International Tax News Blog

Archives: April 2021

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  • EU Pressing U.S. for Details on Tax Plan Capturing 100 Companies

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    By Isabel Gottlieb

    Countries need more details before they can decide whether to back a U.S. proposal to shape international talks on digital taxation, a European Union official said Thursday. The Biden administration has proposed a way around a major roadblock in the OECD-led negotiations—an inability to agree on which companies should be subject to the rules. The U.S. plan calls for using what the White House says are simple, objective criteria to determine which corporations are affected. It comes at a critical moment as 139 countries—including the majority of EU members—try to reach agreement on a deal this summer. 

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    By Isabel Gottlieb, posted on Thursday April 29, 2021
  • EU Countries Balk at Accepting 21% Global Minimum Tax Rate

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    By Hamza Ali

    Opposition in the EU to a high corporate minimum tax rate could be a deciding factor in the OECD-led negotiations on a global tax overhaul. After the Biden administration proposed that the U.S. apply a 21% global minimum rate—sparking speculation that it would push for a high rate in the multilateral talks, too—several European Union countries said they wouldn’t agree to such a high number. Ireland, the Czech Republic, and Hungary have voiced concerns about a higher minimum effective tax rate. Any one of these countries could use its veto power and derail the minimum tax plan in the EU. 

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    By Hamza Ali, posted on Thursday April 29, 2021
  • EU Lawmakers Back Plan for Bloc-Wide Digital Tax By Year’s End

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    By Stephen Gardner

    The European Union should have a bloc-wide digital tax ready to go by the end of 2021, European Parliament lawmakers said in a resolution adopted Thursday. The EU tax should move forward regardless of what happens in the OECD’s global negotiations on taxing revenues from digital business, the resolution said. The parliament voted 549 to 70, with 75 abstentions, for the resolution. 

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    By Stephen Gardner, posted on Thursday April 29, 2021
  • Japan Signals Support for Biden’s Proposed Global Minimum Tax

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    By Kazuhiko Shimizu

    Japan is prepared to back President Joe Biden’s plan for overhauling the taxation of multinational companies as long as there is agreement on a global corporate minimum tax. The White House has proposed reshaping a global plan so that about 100 of the world’s biggest companies pay more taxes in the countries where they sell their goods and services. Japanese tax experts say the minimum corporate tax would boost government revenue at a time when Tokyo is concerned about its national debt. And Biden’s backing provides political cover for Prime Minister Yoshihide Suga—as does the fact that analysts expect few Japanese companies to number among that top 100. 

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    By Kazuhiko Shimizu, posted on Thursday April 29, 2021
  • France, Germany Support U.S. 21% Tax Plan for Corporations

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    By Arne Delfs and William Horobin

    France and Germany have given their backing to the U.S. proposal for a 21% minimum tax on multinational companies, adding momentum to efforts to overhaul global rules despite reluctance from some smaller European countries. The plan by President Joe Biden’s administration earlier this month transformed global negotiations after years of being bogged down. It also carries a significantly higher levy on companies than the 12.5% minimum tax previously discussed. 

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    By Arne Delfs and William Horobin, posted on Tuesday April 27, 2021
  • France, Germany Support U.S. 21% Tax Plan for Corporations

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    By Arne Delfs and William Horobin

    France and Germany have given their backing to the U.S. proposal for a 21% minimum tax on multinational companies, adding momentum to efforts to overhaul global rules despite reluctance from some smaller European countries. The plan by President Joe Biden’s administration earlier this month transformed global negotiations after years of being bogged down. It also carries a significantly higher levy on companies than the 12.5% minimum tax previously discussed. 

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    By Arne Delfs and William Horobin, posted on Tuesday April 27, 2021
  • Excess Profit Tax Would Net Billions, Canada Budget Office Says

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    By James Munson

    Canada would make C$7.9 billion ($6.4 billion) more in revenues if it imposed a 15% tax on excess profits made by large corporations during the coronavirus pandemic, a Parliamentary office said in a report Tuesday. The Office of the Parliamentary Budget Officer analysis comes on the heels of new government proposals to raise taxes on firms. 

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    By James Munson, posted on Tuesday April 27, 2021
  • Biden Tax Plan Leans on Banks to Help Find Unreported Income

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    By Orla McCaffrey and Richard 

    Part of the funding for President Biden’s $1.8 trillion American Families Plan hinges on a beefed-up reporting requirement for banks designed to identify unreported income. The proposal would require banks to report annual account inflows and outflows to the Internal Revenue Service. The requirement would also extend to peer-to-peer payment services such as Venmo but wouldn’t require individuals and businesses to report any additional information to the government, according to people familiar with the plan. Financial institutions already must report interest, dividend and investment income, and the IRS can get bank information during audits. 

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    By Orla McCaffrey and Richard Rubin, posted on Thursday April 29, 2021
  • Big Tech $100 Billion Foreign-Profit Hoard Targeted by Tax Plan

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    By Jackie Davalos and Alistair Barr 

    Technology giants led by Apple Inc. and Microsoft Corp. disclosed more than $100 billion in profit outside the U.S. in their last fiscal years, making them prime targets of President Joe Biden’s proposals to boost taxes on earnings stashed overseas. The tax proposals, unveiled this month to help foot the bill for massive infrastructure plans, target common tactics used by U.S. multinationals such as stashing income-generating assets in low-tax offshore jurisdictions. The tech industry is particularly adept at shifting profits to tax-friendly locales because its main assets -- software code, patents and other intellectual property -- are relatively easy to move around compared to factories and other physical assets.

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    By Jackie Davalos and Alistair Barr, posted on Thursday April 22, 2021
  • Tax Execs See Possible Corporate-Rate Hike, But Maybe Not to 28%

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    By Michael Rapoport

    Tax executives from multinational companies are bracing for a potential increase in the corporate tax rate, though they’re optimistic it won’t be raised all the way to 28% as President Joe Biden has proposed. Biden’s planned increase to 28%, from the current 21% rate, has faced resistance from corporate America and Republicans. And not all Democrats are on board with it. 

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    By Michael Rapoport, posted on Thursday April 22, 2021


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