Americas
US and Vietnam sign tax treaty
The US and Vietnam signed a tax treaty on July 7, the US government has . . .
Americas
Americas
Walmart’s extensive use of tax havens exposed in report
Walmart has stashed billions in 78 subsidiaries and branches located in 15 overseas tax havens, employing well-known international tax strategies to avoid paying foreign taxes in countries where it has retail operations and US taxes on foreign earnings, writes Americans for Tax Fairness in a . . .
Africa
OECD holds BEPS meetings with Latin American/Caribbean, Francophone nations
The OECD on March 2 reported on the outcome of regional meetings held with Latin American and Caribbean nations and with Francophone nations designed to incorporate the views of non-OECD nations into OECD base erosion and profit shifting (BEPS) project output.The OECD said that tax officials from 14 Latin America and Caribbean nations gathered at a February 26-27 meeting in Lima, Peru, along with representatives . . .
Americas
US IRS publishes final regulations on foreign tax credit splitting
US IRS on February 10 published final regulations on foreign tax credit splitting events, clarifying aspects of the proposed and temporary regulations’ definitions of splitter arrangements and clarifying mechanical rules for tracking split taxes and related income. The government said it will address more mechanical issues associated with tracking related . . .
Americas
Singapore and Uruguay sign tax treaty
Singapore and Uruguay signed a tax treaty on January 15, Singapore’s Inland Revenue Authority has announced. The agreement clarifies . . .
Americas
Cayman Islands rejects calls for public registry of company beneficial owners
The Cayman Islands will not adopt a public central register of beneficial owners of companies and other entities, the government confirmed December 30, in a report following a consultation on the matter. The government did commit to improving its current system of providing beneficial ownership information to law enforcement, tax, and regulatory
. . .
Americas
UK says CFC exemption does not apply if tower structure is replaced with CFC finance company
The UK HMRC on October 18 published supplementary guidance on anti-avoidance rules that exclude some creditor loan relationships from being considered “qualifying loan relationships” for purposes of the controlled foreign companies (CFC) finance company exemption. The guidance notes that the OECD/G20 base erosion profit shifting project and potential changes in US tax laws, such as laws targeting the use of hybrid entities . . .
Americas
US Treasury attorney Arlene Fitzpatrick rejoins EY
Arlene Fitzpatrick, who served as an Attorney Advisor in the US Department of Treasury’s Office of Tax Policy, has rejoined Ernst & Young, the firm announced on November 6. Fitzpatrick will work on international tax issues at Ernst & Young’s Washington, DC office. Fitzpatrick was with US Treasury for four years. Prior to that, she was with Ernst & Young for 11 years. See, EY release.
Americas
US IRS releases guidance on economic substance doctrine and penalties
The US IRS on October 9 released guidance on what constitutes a “transaction” for purposes of section 7701(o), which disallows tax benefits when a transaction lacks economic substance. The guidance also clarifies when the IRS will apply related penalties provisions of Section 6662(b)(6).
The IRS states that a “transaction” under . . .
Americas
UK and Canada sign protocol to tax treaty
The UK and Canada, on July 21, signed a protocol and interpretative protocol to the countries’ double tax convention. The agreement provides for a zero rate of withholding tax on dividends to registered pension funds and updates treaty provisions on business profits, the mutual agreement procedure and arbitration, exchange of information, and assistance in collection. Protocol and Interpretative Protocol (PDF 63K), Release
Africa
UK announces plans to begin tax treaty negotiations with several nations
In a paper released November 13, the UK’s HMRC has announced that it will begin tax treaty negotiations with Nepal, Romania, Trinidad, Tobago . . .
Americas
Brian Dill is new head of international tax at Cherry Bekaert
Brian Dill has joined Joined Cherry Bekaert in Atlanta as the firm’s national leader of international tax. In an . . .
Americas
Americas
US IRS releases agent training materials on property sales to related parties that include associated intangibles or services
The US IRS on September 9 made public training materials designed to assist agents in determining if a taxpayer has shifted income outside of the US in a sale of tangible goods to related parties by failing to properly . . .
Americas
US signs Model 1 FATCA IGA with South Korea
The US Treasury Department has updated its FATCA website, reporting that South Korea has signed a Model 1 intergovernmental agreement (IGA) with the US as of June 10. The text of the agreement is available. See, FATCA IGA – South Korea.
Americas
Mexico issues regulations on deductibility of pro rata expense allocations made by nonresidents to Mexican entities
Mexico issued regulations on October 16 on the deductibility of pro rata expense allocations made by nonresidents to Mexican entities and individuals, including special rules on the deductibility of services incurred between related parties, writes EY in an October 17 alert. For discussion, see, EY.
British Virgin Islands
TIEA between Japan and British Virgin Islands to enter into force
Japan’s Ministry of Finance has announced that on Sept. 11 the mutual notification procedures were completed for entry into force of the Agreement between the Government of Japan and the Government of the British Virgin Islands for the Exchange of Information relating to Tax Matters, signed June 18. As a result, the agreement will enter into force on Oct. 11. Release
Americas
IRS updates FATCA FAQs on preexisting obligation election for flow-through entities or intermediaries
A new frequently asked question (FAQ) has been posted to FATCA website in the “General Compliance” category, as follows . . .
Americas
Canada Revenue Agency defines “cost” under new thin cap rules
Neal Armstrong of the law firm Davies has reported that the Canadian Revenue Agency, in a July 22 ruling, T.I. 2014-0526631E5, has defined the word “cost” for purposes of new Canadian thin capitalization rules to mean an asset’s original acquisition cost. See, Tax Interpretations
Americas
Felgran and Harris join AlixPartners’ New York transfer pricing practice
Steven D. Felgran and Steven D. Harri have joined AlixPartners as directors in the firm’s global transfer pricing practice. Both will work from AlixPartners’ New York office. Release
Europe
Americas
US Senate Foreign Relations Committee approves eight long-pending tax treaties, Rand Paul not present for the vote
In a surprising development, the US Senate Committee on Foreign Relations on November 10 approved without amendment proposed income tax treaties with Chile, Hungary, and Poland; proposed tax protocols with Japan, Luxembourg, Spain, and Switzerland; and a proposed protocol amending the multilateral mutual administrative assistance treaty. . .
Africa
US and Algeria sign FATCA IGA
The US Treasury Department has updated its FATCA website, reporting that Algeria and the US signed a Model 1 intergovernmental . . .
Americas
US IRS updates technical FATCA FAQs on data format and structure
Two new FATCA IDES frequently asked questions (FAQs) were posted to the US IRS’s website on September 9 in the “Data Format and Structure” category concerning how to amend a FATCA report and void. . .
Americas
US signs Model 1 FATCA IGA with St. Vincent and the Grenadines
The US Treasury Department has updated its FATCA website, reporting that St. Vincent and the Grenadines has signed a Model 1 intergovernmental agreement (IGA) with . . .
Americas
Transfer pricing economist Shane Koball joins Baker & McKenzie
Shane Koball has joined Baker & McKenzie as a director of economics, the firm announced July 14. Koball, who is based in . . .
Americas
Jerred Blanchard joins Baker & McKenzie’s Houston tax practice
Jerred Blanchard has joined Baker & McKenzie’s tax practice in Houston as Counsel, the firm announced February 5. Blanchard has worked more than 30 years advising clients on mergers and acquisitions . . .
Africa
South Africa publishes guide to implement FATCA
The South African Government, on December 17, released on its website a draft guide for financial institutions. The guide deals with issues arising from an intergovernmental agreement signed by South Africa and United States under FATCA. See, Guide.
Americas
U.S. to issue regulations on foreign tax credit and section 901(m)
The U.S. IRS on July 21 released an advance copy of Notice 2014-44, announcing that the government will issue regulations to prevent taxpayers from engaging in transactions following covered asset acquisitions that are intended to invoke the application of the statutory disposition rule under section 901(m)(3)(B)(ii) but avoid the purpose of section 901(m). Notice 2014-44
Americas
US and Israel sign Model 1 FATCA IGA
The US Treasury Department has updated its FATCA website, reporting that Israel has signed a Model 1 intergovernmental agreement (IGA) with the United States as of June 30. Agreement
Americas
Switzerland Federal Council brings FATCA into force
The Swiss Federal Council announced, on June 6, that the FATCA Act approved by parliament, together with the ordinance on disclosure obligations, will enter into force on June 30. Release
Americas
EU Commission probes McDonald’s tax ruling on Luxembourg permanent establishment
The European Commission, on December 3, announced its fifth investigation into whether a private tax ruling granted by an EU State to a multinational corporation amounted to illegal State aid. This time, a ruling granted to McDonald’s by Luxembourg . . .
Americas
Switzerland announces entry into force of tax treaties with Iceland and Cyprus and protocols with Estonia and Uzbekistan; signing of TIEA with Brazil
The Swiss government on November 24 announced that double tax agreements signed by Switzerland and Cyprus, Iceland, Estonia, and Uzbekistan have entered into force. The goverment also announced that Switzerland signed . . .
Americas
US Treasury official urges Senate committee to approve ratification of pending tax treaties
Witnesses testifying before the US Senate Committee on Foreign Relations on October 29 urged the committee to recommend ratification of eight pending US tax treaties and protocols, highlighting key aspects of the . . .
Americas
Americas
US and Georgia sign Model 1 FATCA IGA
The US Treasury Department has updated its FATCA website, reporting that Georgia has signed a Model 1 intergovernmental . . .
Americas
US signs Model 1 FATCA IGA with Holy See
The US Treasury Department has updated its FATCA website, reporting that the Holy See has signed a Model 1 intergovernmental agreement (IGA) with the US as of June 10. The text of the agreement is available. See, FATCA IGA – Holy See.
Americas
UK removes requirement to file nil FATCA returns, says holding and treasury companies need not report
The UK’s HM Revenue Customs on April 13 notified UK financial institutions that UK FATCA guidance will be amended to remove the requirement to file nil returns and to no longer require FATCA reporting by most holding and treasury companies. HMRC said the US IRS has changed its . . .
Americas
US IRS releases text of FATCA IGA with Kosovo
The US IRS has released on its website the text of a Model 1 FATCA intergovernmental agreement (IGA) signed with Kosovo. The agreement is effective as of January 7 . . .
