Int'l Tax News

Anticipating that taxpayers maywant to restructure their hybrid arrangements to avoid triggering hybrid mismatch rules that take effect next year, the Australian Taxation Office (ATO) has released a new practical compliance guideline.

Proposed business interest deduction regulations have arrived at the Office of Management and Budget for review, suggesting that guidance could be imminent on definitions, computations, and consolidated group rules,while partnership rules appear scheduled for later.

In this article, the authors analyze the EU's new administrative cooperation directive, provide guidance onwhen a specific arrangement is reportable, and consider the effects on alternative investments made from Luxembourg.

In this article, the authors discuss the EU's proposals for taxing the digital economy,with a focus on the proposed directive for a short-term digital services tax.

The Spanish government has launched a consultation for a digital services tax (DST) similar to a controversial levy being considered by the EU.

The Jersey government has lodged draft legislation imposing local economic substance requirements on resident companies as part of its effort to address concerns cited by the EU Code of Conduct Group and the European Commission.

The U.N. tax committeewill kick off its taxation of the digital economyworkwith a questionnaire for its members and other stakeholders butwill start drafting a reportwithoutwaiting for resultswherever possible.

Both Apple and Dublin are appealing the 2016 multibillion-euro tax ruling, and the company refutes allegations that it shirks its obligations, claiming it's theworld's largest corporate taxpayer. Still, the European Union is not slowing down,with officials now haggling over new digital tax proposals thatwould force many of Silicon Valley's biggest names to fork over an even greater slice of their revenue generated inside the 28-member bloc.

In an October report on socialist policies, the Council of Economic Advisers found that U.S. taxation is considerably more progressive than the taxation of Nordic countries because low- and middle-income taxpayers face higher average tax rates in Nordic countries than in the United States and Nordic nations rely more heavily on regressive value-added taxes.

The OECD and the Inter-American Center of Tax Administrations (CIAT) areworking together "to promote a common understanding of the impact of [base erosion and profit shifting] measures developed under the OECD/G20 BEPS Project," including their joint hosting of an event in Lisbon, Portugal.

The Association of International Certified Professional Accountants has issued a policy paper calling for international coordination to address "taxation concerns raised by digital transactions and the general digitalization of the economy."

"International tax issues and tax policies are most effective and efficientwhen tax systems operatewithin an internationally agreed upon platform and approach," the Association of International Certified Professional Accountants saidwhile announcing the release of a report regarding digital economy taxation.

In this article, the author considers how U.S. shareholders receiving deemed distributions from treaty countries could be affected by recently proposed Treasury regulations on the section 965 transition tax and the section 951A global intangible low-taxed income tax.

Canadian Prime Minister Justin Trudeau announced that the federal carbon pricing backup plan for provinces and territories that do not enact their own emissions regimes by 2019will return carbon tax proceeds to residents.

Members of the European Parliament endorsed changes to the digital services tax proposal thatwould alter the definition of "significant digital presence" and raise the tax rate from 3 to 5 percent.

Using gross receipts instead of net income as the basis for the EU's proposed digital services tax (DST) may represent an effort to circumvent countries' treaty obligations, including the arm's-length principle and permanent establishment standard.

France supports the creation of a minimum tax imposed at the international level but alsowants the EU digital services tax plan to go forward, French Finance Minister Bruno Le Maire told the European Parliament.

Italy plans to force banks to spread over 10 years deferred tax assets stemming from mergerswith the view of raising 1.2 billion euros (1.1 billion pounds) in 2019 from the measure, a government source said on Tuesday. The government is looking forways to finance its expansionary 2019 budget and is targeting the financial sector to raise money.

In Brazil, the tax system is highly complex because it comprises too many taxes, mainly concentrated on consumption. Moreover, there are several taxing entities and different tax regimes - depending on the taxpayer's profile, products, activities, etc. - that, aside from the tax burden, result in an excessive cost for taxpayers to complywith many ancillary obligations. A proposal to amend the Brazilian Federal Constitution aims to promote extensive changes to the Brazilian tax system. According to the proposal, the federal excise tax (IPI), federal tax on financial transactions (IOF), federal social contributions on revenues (PIS and COFINS), Federal contribution for funding basic education, federal contribution on fuels (CIDE-Fuels), ICMS and ISS,would be substituted by one single federal VAT, the IBS. This consolidation taxwould be levied on transactionswith goods and services,whichwill be non-cumulative taxwith a broad tax credit system.

The U.K. government said it's still considering taxing U.S. tech companies to help fund efforts to combat the spread of fake news on the internet, and a recommendationwill be made before the spring.

Spain could be at the forefront of taxing digital companies like Alphabet Inc.'s Google starting next year if its minority government gets itsway.

Tupperware Brands Corp. and other multinationals are stillwranglingwith calculations on global intangible low-taxed income more than 10 months after the 2017 tax law's passage.

New Zealand is joining neighboring Australia in making online marketplaces like Amazon Inc. and eBay Inc. pay goods and services tax on for items sold on their platforms.

The European Union's proposed tax on digital companies is likely on safe ground, even in Germanywhere the taxwill hit the hardest, despite mounting questions over its legality.

Ireland plans to require U.S. multinational companies to have real substance in their Irish operations for intercompany-pricing purposes. The companieswould need to price the sale of goods and services between units of the group in away that ensures profits are allocated to countrieswhere value is actually created under 2017 OECD transfer pricing guidelines.

French Finance Minister Bruno Le Maire rejected U.S. taxwriters' calls to abandon the EU's plan to tax digital companies like Facebook Inc. and Alphabet Inc.'s Google. Le Maire insisted it is the EU's right to set its own tax policy, and said the bloc must pursue its own economic and political interestsÔøΩjust as the U.S. didwith its tax reform in 2017.

U.S. banks are experiencing a lending lull as companies tap into their offshore cash thanks to last year's tax overhaul.

In this article, the author discusses value creation and international corporate income tax policy.

The IRS has already suffered one humiliating defeat in Starr International. Could another setback soon be in theworks? The answer depends on how an appellate court inwashington interprets the principal purpose test (PPT) as applied to the Switzerland-U.S. tax treaty.

Germany's finance minister is pushing for global minimum taxation to catch companieswith digital activities in the tax net, as opposition to an EU digital services tax (DST) proposal continues, most recently from U.S. senators.

The proposed global intangible low-taxed income regulations create an inside-outside basis disparity for consolidated groups, but practitioners might be able to persuade the IRS to revise the rules.

Senate Finance Committee Chair Orrin G. Hatch, R-Utah, and ranking member Ronwydenwarned of "significant and growing concern" about a proposed EU digital services tax in a joint letter to European Commission President Jean-Claude Juncker and European Council President Donald Tusk.

A European Parliament committee has published a list of proposed changes to the European Commission's "significant digital presence" directive, including an amendment harmonizing tax rates and anotherwithdrawing the directive entirely.

If the IRS and Treasury are contemplating any changes to guidance on the transition tax because of criticism from the tax community, itwasn't reflected in the unbroken quiet of officials at a public hearing.

The Professional Publishers Association has pushed for Chancellor Philip Hammond to cut VAT on digital publications in his 2018 budget,whichwill be revealed later this month.

Tax and anti-corruption agenciesworldwide should step up collaboration and communicate more effectively, theworld Bank and the OECD said. Eleven countries allow tax and anti-corruption agencies to have "direct" info access, but communication between tax and anti-corruption officials is often on an ad hoc basis.

Germany's Finance Minister Olaf Scholz has proposed a global minimum rate of corporation tax coupledwith tougher measures to prevent tax evaders from stashing their profits in tax havens, newspaperwelt am Sonntag reported.

The acting head of South Africa's tax collection agency said hewas very concerned about the state of the organization,whichwas dogged by low morale and a lack of visionary leadership.

The prospects of the U.K. leaving the EU on March 29, 2019without a deal on its future trading relationshipwith the EU 27 member states continue to fluctuatewildly. Ahead of Brexit day, this article discusses some of the key tax-related matters that finance and tax directorswillwant to have thought about.

In this two-part article, the authors explore interdisciplinary approaches to valuing intangibles. In Part I, the authors briefly review the similarities and differences intangibles valuation for transfer pricing and financial statement purposes, focusing on purchase price allocation. Next, the authors address the conceptual differences that are fundamentally different between these two disciplines aswell as technical differenceswhen taxpayers are applying certain methodologies at the implementation level.

In this two-part article, the authors explore interdisciplinary approaches to valuing intangibles. In Part I, the authors briefly review the similarities and differences intangibles valuation for transfer pricing and financial statement purposes, focusing on purchase price allocation. Next, the authors address the conceptual differences that are fundamentally different between these two disciplines aswell as technical differenceswhen taxpayers are applying certain methodologies at the implementation level.

In this two-part article, the authors explore interdisciplinary approaches to valuing intangibles. In Part I, the authors briefly review the similarities and differences intangibles valuation for transfer pricing and financial statement purposes, focusing on purchase price allocation. Next, the authors address the conceptual differences that are fundamentally different between these two disciplines aswell as technical differenceswhen taxpayers are applying certain methodologies at the implementation level.

In light of the recent elevation of protectionism that created uncertainties and tension to international trade, the authors review the latest gap-bridging efforts between transfer pricing and customs valuation regimes in Part II of this article. In the first part of this two-part article,we explored the similarities and differences of the intangibles valuation between transfer pricing and financial statement purposes, focusing on purchase price allocation.

Tax authorities across theworld, dazzled by potential revenue, have taken notice of the cryptocurrency marketÔøΩdespite its many booms and busts. For tax authorities, the cryptocurrency market could be a rich source of revenue that has gone largely untapped.

Indian tax authorities are making the country an easier place to do business though foreign companies in India still face high tax rates and costly disputes.

The Senate's top taxwriters are urging the European Union to abandon its plan for a 3 percent tax on major digital companies like Facebook Inc., saying it discriminates against U.S. companies.

Ireland released legislation codifying its first controlled foreign corporation regime and other corporate tax changes as the European Commission released the government from a court action concerning Apple's receipt of allegedly illegal state aid.

The IRS has yet to decide fully on the scope of upcoming regs addressing previously taxed income (PTI), an area that has attracted increased attention following the passage of the Tax Cuts and Jobs Act (P.L. 115-97).

German Finance Minister Olaf Scholzwants a global minimum corporate tax to prevent companies from shopping around for tax havens, Handelsblatt daily reported.

The proposed regulations dealingwith revised foreign tax credit ruleswill likely be sent for review by October 19,with proposed regs on section 163(j) following soon after, according to Treasury officials.