Americas
Ireland publishes FATCA user guides
Irish Revenue on June 23 published three FATCA user guides . . .
United States
Americas
US IRS rules CFC loans don’t qualify for Notice 88-108
The US IRS in Chief Counsel Advice 201516064 has ruled that none of a taxpayer’s controlled foreign corporation loans satisfy Notice 88-108 because one of its loans did not satisfy the . . .
Americas
US IRS requires foreign-owned corporations to file info return with tax return
The US IRS on December 24 released final regulations, TD 9707, under sections 6038A and 6038C of the tax code providing that the Form 5472, “Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business,” must be filed in all cases only with the . . .
Americas
US IRS updates list of jurisdictions with in-force TIEAs for nonresident deposit interest reporting
The US IRS on December 16 has updated the list of jurisdictions with which the US has an information exchange agreement for purposes of the bank deposit interest reporting requirements of sections 1.6049-4(b)(5) and 1.6049-8(a) of the Income Tax Regulations. The guidance . . .
Americas
US IRS concludes that CFC’s foreign tax redetermination not included in post-1986 pools for foreign tax credit
The US IRS in Chief Counsel Memorandum 201444039 released October 31 concluded that foreign tax redeterminations with respect to a controlled foreign corporation’s (CFC) pre-1987 accumulated profits, regardless of when made, are accounted for by adjusting . . .
Americas
UK releases FATCA schema and supporting documents
The UK on Sept. 29 released the FATCA schema and supporting documents in advance of the availability of the FATCA service. See, release.
Americas
US, OECD officials among witnesses slated to testify at U.S. Senate Finance hearing on international tax
Six witnesses are scheduled to speak at a US Senate Committee on Finance hearing on international tax, set for July 22. The hearing is expected to address, among other issues, US legislators’ concerns about a recent spate of US multinational inversions undertaken to avoid U.S. tax.
Slated to testify are Robert B. Stack . . .
Americas
India releases guide for financial institutions on FATCA and CRS
India’s income tax department has released a detailed guide for financial institutions to assist with the implementation of FATCA and the common reporting standard for the automatic exchange of information. The 30-page guide, issued August 31, covers the types of institutions that must report, the types . . .
Americas
US IRS concludes royalty payments are exempt under treaty
The US IRS, in a private letter ruling released May 8, has concluded that royalties paid to a foreign corporation for the broadcasting of television channels are exempt from US income tax under the royalties article of a tax treaty. See, PLR 201519003.
Americas
US lawmakers eye untaxed overseas profits as source of funds for highways
US lawmakers on January 29 revealed two different plans to address a shortfall in the US Highway Trust fund, each seeking revenue from US multinationals that defer tax on profits from overseas operations. US Senators Rand Paul, R-Ky., and Barbara Boxer, D-Calif., announced they will introduce legislation that would allow US companies to repatriate their foreign . . .
Americas
India/US transfer pricing deal anticipated
The India expects to sign an agreement with the US on Sunday that sets out a framework to resolve mutual agreement procedure disputes concerning the appropriate markup to apply to related-party transactions, and hopes to sign similar agreements with the UK, France, and other European nations, writes Jayshree P. Upadhyay of Business Standard in a January 24 article, quoting an unnamed tax official. See, Business Standard.
Americas
Morrison joins McDermott’s Washington D.C. office
McDermott Will & Emery on Sept. 8 announced that Philip D. Morrison has joined the firm’s U.S. and International Tax Practice Group located in Washington, D.C. Morrison is formerly with Deloitte Tax, LLP. Release
Americas
US finalizes F reorganization regulations including rules on outbound transactions
The US IRS on September 21 released final regulations regarding the qualification of a transaction as an F reorganization under section 368(a)(1)(F) by virtue of being a mere . . .
Americas
US lawmakers ask Treasury to publish names of inverted companies to better enforce government contracts ban
Seven US Democrats have written to Treasury Secretary Jack Lew, requesting that Treasury publish annually a list of inverted corporations . . .
Americas
US IRS changes FATCA IDES enrollment process for USWA, TFIs, vendors, third party preparers
The US IRS on May 8 announced, via a notice sent through its FATCA News and Information update service, that the FATCA IDES enrollment process for US withholding agents (USWA), territory financial institution (TFI), vendors . . .
Featured News
US Treasury Secretary sees room to negotiate proposed tax rates on foreign profits
The Obama administration is open to negotiating the tax rates for its proposed global minimum tax and one-time tax on previously untaxed foreign deferred profits, US Treasury Secretary Jacob Lew said February 5. . .
Americas
Former US IRS Commissioner Douglas Shulman takes on leadership role at BNY Mellon
Douglas Shulman was named senior executive vice president and global head of client service delivery (CDS) at BNY Mellon and has been appointed to the executive committee, the bank announced January 7. Shulman, 47, is formerly with McKinsey & Co., where he was a senior adviser . . .
Americas
US IRS updates instructions for FATCA report
The US IRS has posted an update to the instructions for Form 8966, FATCA Report, for 2014. The IRS states that the update “supplements the Instructions for Form 8966 to correct and clarify certain references to the reporting requirements of participating [foreign financial institutions] for the 2014 year, including to reflect a correcting amendment to section 1.1471-4(d)(7)(iv)(B) of the temporary chapter 4 regulations (TD 9657).” See, Update to the Instructions for Form 8966 for 2014
Americas
Mike Danilack joins PwC’s Washington DC transfer pricing practice
Mike Danilack, former IRS Deputy Commissioner (International) of the Large Business and International (LB&I) division, has joined PwC, the firm has announced. Danilack will serve as a principal in PwC’s Washington National Tax Services’ transfer pricing . . .
Americas
US Treasury unveils new rules to stop corporate inversions
The Obama administration has announced that it has taken regulatory action to make it more difficult and less lucrative for US companies to invert.
The new rules, which apply to deals closed on Sept. 22 or thereafter, are designed to stop post-inversion planning techniques that allow . . .
The IRS and Treasury on Sept. 23 published a notice which describes regulations that will be issued with respect to inversion transactions. See, Notice 2014-52.
Africa
US and Angola sign Model 1 FATCA IGA
The US Treasury Department has updated its FATCA website, reporting that Angola and the US signed a Model 1 intergovernmental agreement (IGA) as . . .
Americas
24 US tax experts urge Congress to reject proposals for territorial tax system
In a September 25 letter, 24 international tax experts have urged the US Congress to reject legislative proposals calling for the adoption of a territorial tax system and for the immediate taxation US multinational . . .
Americas
US IRS update to FATCA FAQs advises of two incorrect field-level error messages
New frequently asked questions (FAQs) were posted to the US IRS’s FATCA website on August 27 under the subheading “Field Level Errors” as . . .
Americas
US to revise tax rules on property transfers to partnerships with related foreign partners, address valuation of controlled partnership transactions
The US IRS in Notice 2015-54 released August 6 announced that the government will issue regulations overriding section 721(c) nonrecognition treatment in cases where property is transferred by a US person to a partnership that has foreign partners related . . .
Americas
US denial of foreign tax credit for substitute dividend payments upheld by court
A US district court, in the case of Lehman Brothers Holdings Inc. v. US decided May 8, disallowed a US taxpayer’s claim for a foreign tax credit under the US-UK tax treaty for withholding taxes imposed on substitute dividend payments received by its wholly owned US subsidiary from its UK subsidiary pursuant to back-to-back stock loan transactions, EY writes in a May 19 tax alert. See: EY .
Americas
US IRS updates FATCA FAQs on IDES technical issues
New frequently asked questions (FAQs) were posted to the US IRS’s FATCA website on May 8 covering technical issues associated with the FATCA International Data Exchange Service (IDES). The FATCA IDES is an electronic . . .
Americas
US says FFI in jurisdiction with “in-effect” FATCA IGA must obtain GIIN
A new FAQ was posted to the FATCA website on December 22, as follows . . .
Americas
US appeals court affirms Barnes, applies step-transaction doctrine to thwart repatriation strategy
The United States Court of Appeals for the Second Circuit on November 5 upheld the US Tax Court’s decision in Barnes v. Comm., stating that the IRS properly applied the step transaction doctrine to disregard. . .
Americas
U.S. Tax Court denies Amazon’s summary judgement motion in transfer pricing dispute
The U.S. Tax Court, in Amazon.com, Inc. & Subsidiaries v. Commissioner, has denied Amazon’s motion for partial summary judgement, concluding that there are genuine disputes of material fact necessary to determine to whether IRS abused its discretion in adjusting amounts under a cost sharing agreement . . .
Americas
IRS updates FATCA FAQs
The IRS updated the FATCA frequently asked questions and answers on July 23, providing . . .
Americas
EU State aid recoveries from tax rulings should be prospective only, US official says
The US government is trying to persuade the EU Commission that it is inappropriate to require EU States to recover “retroactive” tax from multinationals upon a finding that illegal State aid was provided through overly-generous private tax rulings, Robert Stack . . .
Americas
Ken Brewer Joins Alvarez & Marsal Taxand
Ken Brewer has joined Alvarez & Marsal Taxand’s international tax team in Miami as a senior advisor, the firm announced . . .
Americas
Former US Treasury advisor Alexandra Minkovich joins Baker & McKenzie
Former US Treasury Associate Tax Legislative Counsel, Alexandra Minkovich, has joined Baker & McKenzie’s Washington DC office as counsel, the . . .
Americas
US lawmakers say Treasury must consult Congress on BEPS plan, transfer pricing documentation
US Senate Finance Committee Chairman Orrin Hatch (R-UT) and House Ways and Means Chairman Paul Ryan (R-WI) today sent a letter to Treasury Secretary Jack Lew raising concerns about transfer pricing documentation requirements in the OECD/G20 base erosion and profit shifting (BEPS) plan and calling on the administration to consult . . .
Americas
US and Colombia sign Model 1 FATCA IGA
The US Treasury Department has updated its FATCA website, reporting that Colombia has signed a Model 1 intergovernmental agreement (IGA) with the United States as of May 20. The text of the agreement is available. See, Model 1 IGA.
Americas
US IRS allows change of elections for stock based compensation in cost sharing agreement
The US IRS in private letter ruling 201514006 released April 3 has granted a taxpayer consent to change to the elective method and period-by-period identification for purposes of including stock based compensation as an intangible development cost that taxpayer must share for purposes of its cost sharing agreement. See, PLR 201514006.
Americas
US makes changes to FATCA registration system
The US on October 6 made changes to the FATCA registration system and published an updated version of the FATCA Registration Online User Guide. See, FATCA Registration Online User Guide (PDF 8.91MB), FATCA website
Americas
Singapore proposes regulations to assist with FATCA
Singapore’s government has launched a public consultation on proposed regulations that would help financial institutions comply with the US Foreign Account Tax Compliance Act (FATCA). Singapore has substantially concluded a Model 1 Intergovernmental Agreement with the US, which will be signed in the fourth quarter of 2014. Release
Americas
US Treasury could stop Pfizer/Allergan inversion by expanding anti-hopscotch rule, writes Professor Avi-Yonah: SSRN→
See: The Three Causes of Inversions: Reflections on Pfizer/Allergan and Notice 2015-79, by Reuven S. Avi-Yonah, University of Michigan Law School: SSRN
