Americas
Americas
Americas
US official worries successful EU state aid challenges in Apple, Amazon, and Starbucks cases will hit US treasury – Financial Times
“Any retroactive tax would be borne by US taxpayers in the form of a credit,” notes US deputy assistant secretary, Robert Stack. See: Financial Times
Europe
US signs Model 1 FATCA IGA with Slovak Republic
The US Treasury Department has updated its FATCA website, reporting that the Slovak Republic has signed a Model 1 intergovernmental agreement (IGA) with the US as . . .
Americas
India, Australia, Canada, Costa Rica, Indonesia, and New Zealand sign OECD multilateral competent authority agreement
India, Australia, Canada, on June 3 signed the OECD common reporting standard multilateral competent authority agreement, paving the way for automatic exchange of information by the countries’ tax administration, according to press releases issued by the countries’s governments. Costa Rica, Indonesia, and New Zealand . . .
Americas
US IRS announces that it will “not ordinarily” issue private rulings on FATCA issues, updates procedures to obtain rulings
The US IRS has released its annual “no rule” list, adding FATCA issues to the list of issues that the agency will “not ordinarily” address in private letter rulings or determination letters. . .
Americas
Spain and Canada sign protocol to tax treaty
Spain and Canada have signed a protocol their update their tax treaty, the Spanish government announced on November 18. The new protocol would update . . .
Americas
U.S. provides more guidance on foreign tax credit under section 901(m)
The U.S. IRS, on July 29, released an advance copy of Notice 2014-45, which expands on Notice 2014-44, released its July 21, concerning dispositions of assets following a section 901(m) covered asset . . .
Americas
Ireland willing defend Apple’s private tax rulings in court, says Noonan
The European Commission’s inquiry into whether Ireland granted illegal state aid to Apple by granting the company favorable tax rulings could turn into a long-running court battle, said Finance Minister Michael Noonan on July 3.
“We will provide a detailed, technical, legal rebuttal to the Commission’s position and, if necessary, defend our position in the European courts,” said Noonan, in comments before the Dáil. He added that if the matter goes to court, it could remain unresolved for three to five years . . .
Americas
Caterpillar defends offshore tax plan at U.S. Senate hearing
Caterpillar and its auditor and tax adviser, PwC, at an April 1 Senate hearing, defended against allegations that Caterpillar improperly shifted U.S. profits from the sale of replacement parts to a Switzerland subsidiary. The Permanent Subcommittee on Investigations hearing followed up on the subcommittee’s March 31 report, which alleged that Caterpillar improperly avoided or deferred $2.4 billion in U.S. tax from 2000 to 2012
See also: Reuters ,USA Today, CNN Money, The New York Times
Americas
US IRS releases final and temporary regulations on dividend equivalent payments subject to withholding
The US IRS has issued final guidance under section 871(m) on dividend equivalent payments made to foreign corporations and nonresident aliens. The regulations, published in the Federal Register on September 18, establish . . .
Americas
US disappointed with BEPS plan guidance, Treasury officials say
The US is disappointed with much of the OECD/G20 base erosion profit shifting (BEPS) plan output, particularly work on permanent establishments (PEs), though it supports efforts on country-by-county reporting, dispute resolution, hybrids, and interest stripping, US Treasury officials said June 10–11 in Washington at the 2015 OECD International . . .
Americas
US signs fewer APAs in 2014
The US IRS signed significantly fewer advance pricing agreements (APAs) in 2014 as compared to the two previous years, according to statistics released by the goverment on March 30. A total of 101 APAs were signed in 2014, as compared to 145 in 2013 and 140 in. . .
Americas
PwC’s dual role as auditor and tax adviser under US scrutiny
The US Public Company Accounting Oversight Board is investigating whether PwC’s provision of both tax advice and auditing services to Caterpillar Inc. created a conflict of interest, and whether US rules should be modified to prohibit accounting firms from operating in these dual roles, according to a November 19 article by Michael Rapoport of the Wall Street Journal. For in-depth discussion, see Wall Street Journal.
Americas
Stack provides update of US position on BEPS
The Rascon CPA Firm has provided a report of October 3 comments made by Robert Stack, Treasury deputy assistant secretary (International Tax Affairs) concerning the OECD’s base erosion . . .
Americas
Dean S. Shulman joins Kirkland & Ellis, New York
Kirkland & Ellis LLP, on July 16, announced that Dean S. Shulman has joined the Firm’s New York office as a partner in the Tax Practice Group. Release
Americas
IRS releases updated qualified intermediary agreement
The IRS has released Rev. Proc. 2014-39, which includes an updated qualified intermediary (QI) agreement. The revenue procedure supersedes the QI agreement originally released as Rev. Proc. 2000-12. Rev Proc. 2014-39 also outlines the application procedures and the requirements for qualified intermediary status under Chapters 3, 4, and 61 and Section 3406. Rev. Proc. 2014-39
Americas
US updates FATCA foreign financial institution agreement
The US IRS, on June 24, released Rev. Proc. 2014-38, which includes a revised foreign financial institutions (FFI) agreement for FFIs that wish to enter into an agreement with the IRS to be treated as a participating FFI under the Foreign Account Tax Compliance Act (FATCA)
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Americas
Malta and Curaçao sign double tax treaty
Malta and Curaçao signed a tax treaty on November 18, Malta’s Ministry for Finance . . .
Americas
US and San-Marino sign FATCA Model 2 IGA
The US Treasury Department has updated its FATCA website, reporting that San Marino and the US signed a Model 2 intergovernmental . . .
Americas
Americas
India and US set to resolve 200 transfer pricing disputes by year end
The Indian government has announced that it has settled 35 transfer pricing disputes with the US in the information technology services and information technology enabled services industries thanks to a framework agreement signed . . .
Americas
El Salvador signs OECD Multilateral Convention
El Salvador on June 1 signed the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, the OECD has announced. The country is the 86th signatory to the agreement, which is designed combat offshore tax evasion through international cooperation. See, release.
Europe
Switzerland signs TIEA with Grenada
Switzerland’s Federal Department of Finance on May 21 announced that Switzerland and Grenada have signed a tax information exchange agreement (TIEA). The agreement, signed . . .
Americas
US IRS rules refund attributable to deductions for creditable foreign taxes is not timely
The US IRS, in a technical advice memorandum released April 24, ruled that a refund claim filed in year 13 is not timely for taxes paid for year 2 if the claim for refund results from a net operating loss (NOL) in year 4 that was generated when the taxpayer made a timely election to deduct foreign taxes paid in lieu of the previously claimed . . .
Americas
California Franchise Tax Board concludes some cost sharing arrangement payments are gross receipts for sales factor
The State of California Franchise Tax Board (FTB) has concluded that some payments received pursuant to a cost sharing arrangement (CSA) constitute gross receipts for purposes of the California sales factor. In TAM 2015-1, dated . . .
Africa
G20 finance ministers endorse plan for multilateral instrument to implement BEPS
G20 finance ministers have agreed to a plan to create a multilateral instrument to implement tax treaty-related measures under OECD/G20 the base erosion and profit shifting (BEPS) plan, the ministers said in a communique following their February 9-10 meeting in Istanbul . . .
Americas
Ryan named US House Ways and Means chair
Wisconsin Republican, Paul Ryan, was named chair of the US congressional tax-writing panel, the House and Ways Committee, on November 19. Ryan will lead the Republicans’ efforts to reform the US tax code. See, Release – House Speaker John Boehner
Americas
Brazil modifies withholding tax treatment of payments for technical services or assistance under tax treaties, notes Deloitte
Brazil’s tax authorities, in guidance released June 20, have made a “landmark change” to the withholding tax treatment of outbound payments for technical services and technical assistance in cases covered by a tax treaty, writes Deloitte in a June 27 report. For analysis of the new guidance, Interpretative Act No. 5/2014 (ADI RFB 5/2014), which can be applied retroactively, see report by Deloitte.
Americas
US Congressmen say BEPS being used to raise tax on Americans
US Republican congressmen, in a June 2 statement, said they were concerned that some countries see the OECD base erosion and profit shifting (BEPS) project as a means to “raid the American Treasury.” . . .
Americas
Texas-based global tax firm, Ryan, acquires Netherlands consulting firm, Altus International
Ryan, a global tax services firm, on June 3, announced that it has acquired Altus International, a Netherlands-based firm that provides transfer pricing, business restructuring, and valuation services. Release
Americas
Americas
US IRS corrects effective dates in dividend equivalent regs applicable to foreign corporations and nonresidents
The US IRS on December 7 published corrections to final and temporary regulations (TD 9734) issued September 18, changing the effective date . . .
Americas
Google, Facebook defend “double Irish” before EU Parliament tax committee
EU lawmakers have nothing to fear from Google’s “double Irish” tax scheme because the purpose of the structure is to avoid current inclusion of US tax, not avoid EU tax, Google’s director of public policy & government affairs, Nicklas Lundblad, told a European Parliament committee investigating the tax affairs of multinationals on November 16. Lundblad was joined by representatives of Amazon, Barclays Bank, The Coca-Cola Company
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Americas
US IRS to hold hearing on regs on exception from passive income for foreign insurance companies
The US IRS has announced that it will hold a hearing on September 18 on proposed regulations released April 23 that provide guidance . . .
Americas
US Treasury to write regs requiring country-by-country reporting for transfer pricing risk assessment
The US Treasury’s 2015–2016 priority guidance plan, released July 31, reveals that the US government intends to develop regulations implementing OECD/G20 base erosion profit shifting (BEPS) plan rules requiring country-by-country reporting by multinational enterprises for transfer pricing risk. . .
Americas
US IRS FATCA guidance grants more time for QI, WP, and WT joint account option
The US IRS on December 30 announced, via a notice sent through its FATCA News and Information update service, that qualified intermediaries (QI), withholding foreign partnerships (WP), and withholding foreign trusts (WT) will be granted an extension of time to apply requirements of the joint account option under the QI agreement, WP agreement, or WT agreement. . .
Americas
Switzerland’s Federal Council adopts dispatch on double taxation agreement with Argentina
Switzerland’s Federal Council on October 15 adopted a dispatch on the double taxation agreement with Argentina and submitted the agreement to parliament for approval. Release.
Americas
US Treasury issues more tax guidance designed to stop inversions
The Obama administration on November 19 issued another package of tax measures designed to make it more difficult and less profitable for US companies to invert. The guidance, Notice 2015-79 supplements measures . . .
Americas
US ends tax-free outbound transfers of foreign goodwill and other intangibles, expands transfer pricing aggregation rules
The US IRS has published proposed section 367 regulations that eliminate rules that allowed intangibles, including foreign goodwill and going concern value, to be transferred by a US person to a foreign corporation without gain recognition. The Service also released related . . .
