The United Arab Emirates and Barbados, on Sept. 26, signed an agreement on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. The agreement emphasizes the desire of both countries to avoid double taxation on the income of individuals and companies, commercial sea and air transport, and on other similar taxes. Release
Countries negotiating the OECD/G-20 base erosion profit shifting (BEPS) guidance have advanced a proposal to require countries that seek access to country-by-country reporting data to first to agree to enhanced dispute resolution, a US Treasury official said on Sept 17.
Speaking during a Deloitte webinar, Robert Stack, US Treasury Deputy . . .
Sutherland Asbill & Brennan LLP has provided a report of a July 28 meeting of the Multistate Tax Commission’s Arm’s Length Adjustment Services Advisory Group, which is creating a transfer pricing model for the U.S. states and is considering ways to improve the states’ ability to analyze intercompany transactions. See, Sutherland SALT report.
Ireland’s Revenue Commissioners, on June 30, released guidance on compliance by Irish entities with their obligations under U.S. FATCA provisions. See, Financial Accounts Reporting (United States of America) regulations 2014 (PDF, 179KB).
A Russian law, signed June 30, gives financial institutions the right to pass information about U.S. taxpayers to the IRS to satisfy FATCA requirements, but only after first sending the information to Russian authorities and only if the taxpayer gives permission for the information transfer, reports Delphine d’Amora of The Moscow Times.
The United States Council for International Business has written to US Treasury, arguing that draft provisions in the US model tax treaty released last May “tilt too far in their attempt to prevent inappropriate claims of treaty benefits.” The group is concerned with provisions on special regimes, subsequent changes in law, and limitation on benefits. See: USCIB. Related: MNE Tax.
The US IRS on September 2 released temporary and proposed regulations on the application of the section 956 deemed dividend rules to partnership transactions. Regs were also issued providing that a controlled foreign corporation (CFC) must conduct relevant activities itself to take advantage of the foreign personal holding company income (FPHCI) active rent and royalties exception, including in situations where a cost sharing . . .
Thomas H. Young has joined McDermott Will & Emery’s US and international tax practice group as a partner based in Chicago, the firm has announced. Young is formerly a senior manager of international tax at KPMG LLP, where . . .
The US Treasury Department has updated its FATCA website, reporting that Curacao has signed a Model 1 intergovernmental agreement (IGA) with the United States as of December 16, 2014. The text of the agreement is available. See, agreement.
Michael Lebovitz and Stephen Weerts have joined White & Case’s Los Angeles office, the firm announced January 5. The lawyers, both formerly with DLA Piper, will work on legal and tax aspects of international joint ventures, cross-border mergers and acquisitions, and international corporate finance and capital markets transactions. See, White & Case release.
The US IRS on October 10 released an advance copy of Notice 2014-59, expanding transition relief provided in Notice 2014-33 to withholding agents, foreign financial institutions, and payors that have withholding or information reporting requirements respect to accounts and obligations they open or enter into before January 1, 2015. See, Notice 2014-59
Sutherland Asbill & Brennan LLP has provided a detailed account of an October 6 meeting of the US Multistate Tax Commission’s Arm’s Length Adjustment Services Advisory Group, where seven external economic firms provided advice on ways the MTC could assist states with their transfer pricing challenges. For detailed discussion, see Sutherland Asbill & Brennan.
Two Canadian-U.S. dual citizens, on August 11, filed suit in the Federal Court of Canada challenging the constitutionality of the intergovernmental agreement signed by the U.S. and Canada that implements FATCA.
The lawsuit, funded by the Alliance for the Defense of Canadian Sovereignty (ADCS), alleges that the intergovernmental agreement violates provisions of the Canadian Charter of Rights and Freedoms . . .
U.S. Treasury Department has updated its FATCA website, reporting that Haiti has reached an “agreement in substance” on a Model 1 intergovernmental agreement (IGA) with the United States and consented to this status as of June 30.
An Australian law to give effect to the FATCA intergovernmental agreement between Australia and the United States received royal assent on June 30. For the text and history of the law, see: Tax Laws Amendment (Implementation of the FATCA Agreement) Bill 2014. For more analysis, see King & Wood Mallesons
Sen. Rand Paul, a Kentucky Republican, and Sen. Harry Reid, a Nevada Democrat, are advocating for a one-time repatriation tax holiday for multinationals to replenish depleting federal highway funds, according to a June 9 article by Jonathan Weisman, New York Times.
The IRS has announced, in Notice 2014-32, that it will amend regulations under section 367 relating to the treatment of property used to acquire parent stock or securities in certain triangular reorganizations involving one or more foreign corporations. Notice 2014–132 (27k). For analysis, see: Sally P. Schreiber, Journal of Accountancy; Deloitte; Bloomberg; KPMG
US Senate Finance Committee Chairman Orrin Hatch (R-Utah) in a July 16 letter requested that the US Government Accountability Office (GAO) conduct an analysis of the impact of the OECD/G20 base erosion profit shifting project (BEPS) on American . . .
G7 leaders, in a joint declaration issued June 8, made a “commitment to establish binding mandatory arbitration to ensure that the risk of double taxation does not act as a barrier to cross-border trade and investment.” The leaders also said they support work being done on binding arbitration as part of the OECD/G20 base erosion profit shifting (BEPS) project, and encouraged others . . .
UPDATE (6/9/2015): Christian Aid sounds alarm over G7 plan for mandatory tax arbitration: Christian Aid, on June 9, called the G7 leaders’ expression of support for compulsory binding arbitration in multinational tax disputes “deeply troubling,” stating . . .