International Tax News Blog

Archives: May 2021

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  • France Puts Onus on G-7 to Lead the Way in Global Tax Revamp

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    By William Horobin

    European governments are increasingly optimistic that the G-7 could mark a breakthrough after U.S. President Joe Biden’s administration made proposals on the two pillars of the talks: where to tax firms in the digital era, and a minimum rate. Le Maire said that while the U.S. proposal for a 15% floor would feature in the London talks, the key issue for France remains new rules on how to divide up rights to tax multinationals -- the so-called pillar one of international negotiations. On Wednesday, he said that, subsequent to a recent U.S. proposal to limit rules to the 100 biggest firms, there is progress toward ensuring digital giants are covered. 

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    By William Horobin, posted on Thursday May 27, 2021
  • Global Deal on Tax Nears First Stage as G-7 Seeks Common Ground

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    By Tim Ross, Alessandra Migliaccio, and William Horobin

    A global agreement that could reshape the tax landscape for the biggest corporations is approaching a crucial first stage as the Group of Seven nations hone in on an accord that might feature both a minimum rate and encompass digital giants. If finance ministers due to meet virtually on Friday and in person next week can find enough common ground, that could pave the way for a wider consensus to form within the Group of 20, building a foundation for the worldwide agreement that is in negotiators’ sights. 

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    By Tim Ross, Alessandra Migliaccio, and William Horobin, posted on Wednesday May 26, 2021
  • Germany, France Say Global Tax Deal Could Be Reached in Weeks

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    By Birgit Jennen and William Horobin

    Germany and France said discussions on a global agreement on corporate tax rates were entering the home stretch and that a deal could be reached within weeks. French Finance Minister Bruno Le Maire indicated support for a U.S. proposal to set the minimum rate at 15%, calling it an “interesting and solid basis” for discussion. 

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    By Birgit Jennen and William Horobin , posted on Wednesday May 26, 2021
  • EU Digital Levy Will Hit Thousands of Mostly EU-Based Companies

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    By Hamza Ali

    The EU’s digital levy will be broadly based so as not to discriminate against U.S. tech firms, a top European Commission tax official said Tuesday. The governments of France, Spain, and Italy, among others, have unilaterally acted to create their own digital services taxes. That drew the ire of the Trump administration, which argued that they unfairly targeted U.S. tech firms because of their high thresholds for earnings. It opened trade investigations to determine whether they justified the imposition of retaliatory tariffs. Angel said that the EU’s tax would show that concerns that the new digital levy would be similar to these taxes are misplaced. 

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    By Hamza Ali, posted on Tuesday May 25, 2021
  • OECD Global Tax Plan Must Protect U.S. Companies, Senator Says

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    By Isabel Gottlieb

    The Organization for Economic Cooperation and Development’s two-part plan would see more corporate profits attributed to the countries where companies make sales, known as “Pillar One,” and establish a global minimum corporate tax rate, known as “Pillar Two.” The U.S. in April pitched a proposal that would narrow the OECD plan and target 100 of the largest and most profitable companies. Crapo called for Treasury to report to Congress on how many U.S. companies would be among the roughly 100 firms that would see their profits reallocated under the U.S. Pillar One proposal, and how the plan would affect U.S. tax revenue. 

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    By Isabel Gottlieb, posted on Tuesday May 25, 2021
  • U.S. Proposal on 15% Minimum Tax is ‘Good Compromise’: Le Maire

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    By William Horobin

    French Finance Minister says U.S. proposal for a global minimum tax on corporations of 15% is a “good compromise,” but the key question is clearly to have a compromise and agreement about the two pillars: digital taxation and minimum taxation.” Le Maire says there must be a political agreement on both elements of international tax negotiations by the G-20 meeting in July at the latest. 

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    By William Horobin, posted on Friday May 21, 2021
  • SHIELD Details, GILTI Changes Headline Green Book Proposals

    By: Andrew Velarde

    Green book provides more detail on Biden administration’s GILTI and SHIELD proposals.

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    By Andrew Velarde, posted on Tuesday June 1, 2021
  • White House Proposal on Book Income Minimum Tax Evokes Angst

    By: Emily L. Foster

    Green book provides more detail on Biden administration’s minimum book tax proposal.

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    By Emily L. Foster, posted on Tuesday June 1, 2021
  • Crapo Wants Treasury Answers to OECD Global Tax Reform Questions

    By: Stephanie Soong Johnston

    The Senate’s top Republican taxwriter, Senate Finance Committee ranking member Mike Crapo, R-Idaho, has asked Treasury for further analysis about its position in OECD-led tax reform negotiations — and for a promise that any deal emerging from those talks won’t discriminate against American companies.

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    By Stephanie Soong Johnston, posted on Wednesday May 26, 2021
  • Engie: EU General Court Discovers Groupwide Analysis

    By: Lee A. Sheppard

    Lee Sheppard analyzes the General Court of the European Union (GCEU)’s recent decision in Engie, which she argues treated an affiliated group as a single taxpayer, and applied the step transaction doctrine on the basis of substance rather than form.

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    By Lee A. Sheppard, posted on Monday May 24, 2021


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