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The Australian Accounting Standards Board (AASB) in April published Financial Reporting by Non-Corporate or Small Entities, broadly surveys the academic literature available on financial reporting by non-corporate . . .

Americas

US agencies propose tax rule for depository institutions in consolidated groups

Depository institutions in consolidated groups would be required to enter into “tax allocation agreements” with other members of their group that join in the filing of a consolidated tax return under a proposed rule published May 10 . . .

Accounting

European accounting group seeks input on IASB agenda

The European Financial Reporting Advisory Group (EFRAG) on May 20 issued a joint consultation document seeking input on the International Accounting Standard Board’s (IASB) future agenda . . .

Europe

Commission recommends EU states grant up to EUR 3 million carryback of losses to at least 2019 to help businesses that have suffered from COVID-19 pandemic : EU Commission→

Europe

Ukraine’s new transfer pricing reporting forms

Yuri Nikolaychuk, Associate Partner, Rödl & Partner, Kyiv, discusses recent updates to Ukraine’s required transfer pricing documentation . . .

Americas

The EU Commission’s objections to Amazon’s transfer pricing approach

New York City Economist Dr. J. Harold McClure examines why the EU Commission’s objections to Amazon’s transfer pricing approach resulted in Amazon’s win . . .

Accounting

UK Financial Reporting Council notes cash flow statement errors are a recurrent problem

The UK’s Financial Reporting Council (FRC) on May 19 published a Thematic Briefing: The audit of cash flow statements, noting the results of the FRC’s constructive engagement findings and the efforts audit firms have taken to shore up the audit of cash flow statements . . .

Accounting

IFRS clarifies accounting for deferred tax on leases, decommissioning

The International Accounting Standards Board (IASB) on May 7 issued amendments to IAS 12, the IFRS standard on income taxes, to clarify how companies should account for deferred tax on transactions . . .

Americas

US agrees to 15% global minimum tax rate, boosting odds for Pillar 2 agreement

The US, which has been leading the push for a global agreement on a minimum corporate tax, has proposed a minimum tax rate of 15% – a concession from the 21% rate that the Biden Administration previously . . .

Accounting

EU financial advisory members to field test IASB proposals

The European Financial Reporting Advisory Group (EFRAG) is asking companies to commit to field testing certain International Accounting Standards Board (IASB) proposals over the next few months . . .

Accounting

FASB updates standard for call options

The Financial Accounting Standards Board on May 3 issued an updated standard clarifying an issuer’s accounting for certain modifications or exchanges of freestanding equity-classified written call options . . .

OECD

Pillar One compromises to gain US and broader consensus likely mean any agreement would bring limited gains in terms of fairness, efficiency, and administrability, professor says: Aitor Navarro / SSRN→

BEPS multilateral tax treaty signatories provide interpretation guidelines

Issues relating to the interpretation and implementation of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) should be resolved under several guiding . . .

Europe

EU Advocate General advises on Portugal’s disparate tax treatment of dividends

Advocate General Kokott of the Court of Justice of the European Union (CJEU), in a May 6 opinion, advised the CJEU to rule that EU free movement of capital requirements . . .

Americas

New Zealand will levy digital services tax on locally-derived revenues of Google, Facebook if no OECD accord is reached, Revenue Minister says: Jonathan Milne / newsroom.pro→

Americas

Canadian officials again warn US that they plan to impose a digital services tax in 2022 unless global tax agreement is reached: Reuters→

Europe

Poland plans enhanced R&D tax incentives in economic recovery effort

The Polish Ministry of Finance announced on May 5 various tax plans, including enhanced research and development incentives, in connection . . .

Europe

Ireland likely to oppose EU plan for unified tax base: Eoin Burke-Kennedy / The Irish Times→

Europe

Italy to introduce 20% R&D credit for work on drugs, including COVID-19 vaccines, if company grants non-exclusive licenses to third-parties: Reuters→

Europe

EU report finds states could improve policies on R&D incentives, tax avoidance

The European Commission’s Annual Report on Taxation 2021, released May 18, finds that EU member states have made progress in bringing their tax policies in line with EU priorities, but areas for improvement remain . . .

Americas

UK firm Cairn Energy sues Air India to enforce a USD 1.2 billion arbitration award in tax dispute against India: Euan Rocha & Jonathan Stempel / Reuters→

Azerbaijan

Japan, Azerbaijan to begin negotiations May 20 for new tax treaty to replace 1986 treaty: Japan Ministry of Finance→

Americas

Hearing scheduled next week on Lily Batchelder’s nomination as Treasury’s assistant secretary for tax policy: US Senate Finance Committee→

Asia-Pacific

Jordan extends postponement of 2 percent tax on imports: Ministry of Digital Economy and Imports→

Europe

The UN transfer pricing manual’s guidance on IP valuation and royalty rates

New York City Economist, Dr. J. Harold McClure, discusses the latest edition of the United Nations Practical Manual on Transfer Pricing for Developing Countries, released April 27, which includes some useful observations on the nature of intangible assets, yet it has a very sparse discussion of the evaluation of intercompany royalty rates . . .

Asia-Pacific

Australian draft guidance clarifies tax compliance for intangibles arrangements

The Australian Taxation Office set out its compliance approach to various international arrangements relating to intangible assets and the associated tax compliance risks in a draft . . .

More News

OECD report details its efforts to help developing countries during COVID-19

The OECD unveiled a report on May 19 detailing its efforts over the past year to help developing countries create better tax policy measures, maximize revenue collection . . .

Africa

South African tax guidance explains withholding rules on interest, royalties

The South African Revenue Service has issued guidance clarifying the application of withholding tax provisions applicable to interest and royalties in two interpretation notes . . .

Austria

ECJ rules interest payments due for untimely value-added tax refunds

The European Court of Justice ruled on May 12 that refunds resulting from adjustments to the amount of value-added tax that a taxpayer owes must be paid with interest when not paid within a reasonable period of time . . .

Americas

US IRS advises on inclusion of royalties in subsidiary’s five-year projection under cost sharing agreement

In unofficial advice, the IRS Office of Chief Counsel advised on circumstances when a taxpayer may not need to include any royalties in its five-year projection for a US subsidiary . . .

Asia-Pacific

Sailing Pakistan’s IT exports through the winds of tax credits

Muhammad Khurram Shabbir, Ph.D. student, NUML, discusses Pakistan’s Federal Board of Revenue’s revelation of a proposal to give more tax concessions to the IT export sector . . .

Digital Economy

Ambitious EU tax agenda includes new common corporate tax base proposal

The European Commission on May 18 announced several proposals that would dramatically alter the taxation of multinational groups, including proposals to allocate MNE profits among EU states using formulary apportionment and require MNEs to publish their effective tax rates . . . .

Americas

Chile clarifies VAT and withholding tax rules for foreign digital services

Fernando Barros and Tomás Kovacevic, Barros y Errázuriz Abogados, Santiago, discuss the Chilean tax agency’s April 21 issuance of regulations on the application of value-added tax (VAT) to digitalized services provided from abroad . . .

Africa

African Tax Administration Forum proposes simpler, more equitable “Pillar One”

The African Tax Administration Forum on May 12 sent a revised Pillar One proposal to the OECD Inclusive Framework, emphasizing . . .

Europe

EU court’s state aid decision in Amazon tax case published in English

The General Court of the European Union on May 17 published the English-language version of its decision holding that the European Commission failed to establish . . .

Americas

US Supreme Court allows challenge to microcaptive insurance reporting requirements to proceed: Andrew G. Simpson / Insurance Journal→

Europe

Switzerland advances withholding tax reform

Francesca Amaddeo, Tax Law Competence Centre (SUPSI), discusses the Swiss Federal Council’s April 15 proposal to exempt Swiss interest income from federal withholding tax . . .

Asia-Pacific

China maintains tariff and import tax incentives for certified foreign R&D centers

Grace Lin, Cuatrecasas, discusses the Chinese government’s two April notices announcing new tariff and import tax policies to support technology innovation under the 14th Five-Year Plan . . .

Europe

Ukraine’s new transfer pricing rules expand taxpayer obligations