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 . . .
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 . . .
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.
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 . . .
In a paper released November 13, the UK’s HMRC has announced that it will begin tax treaty negotiations with Nepal, Romania, Trinidad, Tobago . . .
Brian Dill has joined Joined Cherry Bekaert in Atlanta as the firm’s national leader of international tax. In an . . .
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 . . .
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.
A new frequently asked question (FAQ) has been posted to FATCA website in the “General Compliance” category, as follows . . .
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. . .
The US Treasury Department has updated its FATCA website, reporting that Algeria and the US signed a Model 1 intergovernmental . . .
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. . .
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 . . .
Shane Koball has joined Baker & McKenzie as a director of economics, the firm announced July 14. Koball, who is based in . . .
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 . . .
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.
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
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 . . .
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 . . .
The US Treasury Department has updated its FATCA website, reporting that Georgia has signed a Model 1 intergovernmental . . .
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.
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 . . .
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 . . .
The European Commission on December 19 requested formal consultations with the US in the World Trade Organization (WTO) concerning recent Washington State legislation extending tax subsidies to Boeing and other aerospace firms from 2024 through 2040, estimated at USD 8.7 billion. The Commission maintains that Washington State tax subsidies, originally set to expire in 2024, have already been declared WTO inconsistent. See, EU Commission release.
The US IRS on December 12 published final regulations on reporting of specified foreign financial assets (TD 9706) and removed associated temporary regulations. According to a summary provided . . .
Canadian billionaire Eugene Melnyk has confirmed that, in 2012, he made a presentation to U.S. tax authorities as an “official whistleblower,” alleging that Valeant Pharmaceuticals, formerly a U.S. company, should have continued to pay U.S. tax following its merger with Canada-based Biovail and change of headquarters to Canada, writes Nicolas Van Praet of the Financial Post. See, Financial Post.
Sam Maruca, former IRS Director of Transfer Pricing Operations for the Large Business and International Division, has rejoined Covington & Burling’s Washington, D.C. office as a partner. Maruca spent three years with the firm before joining the IRS in May 2011. Release
Gregory Hartker has joined Morgan Lewis as of November 17 in firm has announced. Hartker joins . . .
The OECD’s planned guidance on the profit split method will likely consist of a series of examples that demonstrate when the method is considered the best method for transfer pricing purposes and how it should be . . .
The US Treasury Department has updated its FATCA website, reporting that Cambodia has. . .
The US’s FATCA International Data Exchange Service (IDES) Gateway has opened, allowing financial institutions and host country tax authorities to securely send FATCA information reports on financial accounts held by US persons to the IRS, the IRS announced March 3. IDES will operate on all major . . .
US presidential candidate Jeb Bush unveiled his tax plan in The Wall Street Journal on September 8, proposing a 20 percent corporate tax rate, limits on tax deductions, and a move to a territorial tax system coupled with “a one-time tax of 8.75%, payable over 10 years, on the more than $2 trillion in corporate profits sitting overseas.” See: The Wall Street Journal.
The US Court of Appeals for the District of Columbia Circuit on August 14 rejected on procedural grounds a challenge to IRS regulations that impose a penalty if a bank fails to furnish information to the US government about interest earned by nonresident . . .
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