Americas

IRS’s William Alexander to join Skadden Arps

William Alexander will join Skadden, Arps, Slate, Meagher, & Flom’s Washington, DC office, the firm announced January 8. Alexander, who has been with the IRS Office of Chief Counsel since 1990 and served as IRS associate chief counsel (corporate) for the last 12 years, will join Skadden’s global tax group . . .

Asia-Pacific

China finalizes GAAR implementing guidance

The Chinese government has finalized administrative measures implementing its general antiabuse rule (GAAR), the State Administration of Taxation (SAT) announced December 12. The guidance implements GAAR rules introduced in 2008, addressing the law’s scope, judging criteria, adjustment methods, working procedures, and dispute resolutions, the SAT said in . . .

Europe

UK proposes MNE “diverted profits” tax, releases consultation on hybrid mismatches

The UK government will introduce a new “diverted profits tax” to ensure that multinational corporations pay the correct about of tax, British Chancellor of the Exchequer, George Osborne, announced December 3 in his Autumn Statement. The UK also released a consultation on hybrid mismatches, and Osborne reaffirmed the UK’s intention to introduce country-by-country reporting for . . .

Europe

Poland releases draft general antiavoidance law

The Polish government on Sept 10 released draft general antiavoidance legislation as well as procedures for obtaining advance tax rulings to confirm that intended transactions do not qualify as abusive, write Karina Furga-Dąbrowska and Rafał Mikulski of Dentons in a Sept. 15 post. For a detailed discussion of the tax proposal, see Dentons.

Featured News

OECD officials say multilateral instrument is legal, more BEPS guidance coming

Countries can legally use a multilateral instrument to amend existing bilateral tax treaties to implement the OECD’s base erosion and profit shifting (BEPS) initiative, Pascal Saint-Amans, Director, OECD Center for Tax Policy and Administration, said on May 26, during an update of OECD progress on the BEPS action plan.

Saint-Amans said that a team of international lawyers have found legal precedent in areas other than tax . . .

Asia-Pacific

China To expand VAT to telecoms

China will replace its turnover tax on the telecom sector with value-added tax (VAT) effective June 1, the government announced on April 30. “Basic telecom services such as voice calls and bandwidth leasing or sales will be subject to 11 percent VAT while value-added services such as messaging, data transfer and Internet access will be subject to a 6 percent rate. Telecom services for overseas clients will be exempt,” state-run news agency Xinhua reported. See, Xinhuaet

Europe

Russian Bill Would Introduce CFC Regime

Russia’s Ministry of Finance, on March 18, published a bill introducing controlled foreign company (“CFC”) rules to the Russian tax laws. The bill also deems a foreign company as a Russian tax resident when the company’s management is in Russia and taxes sales of shares in an entity where the entity’s assets consist of indirectly owned Russian real property. For analysis, see CMS Bureau Francis Lefebvre, Laggan & Associates Ltd, Debevoise & Plimpton LLP, EY

Europe

UK outlines priorities for countering base erosion and profit shifting

HM Treasury and HM Revenue and Customs have released a position paper outlining the UK’s priorities for the ongoing work with G20 and OECD taking forward the 15 point Action Plan to counter Base Erosion and Profit Shifting.

The paper includes proposals for new international rules to address cross-border business structures or finance transactions, a disclosure scheme for international tax schemes, and the creation of a single Large Business Directorate within HMRC.

HM Treasury and HM Revenue and Customs

Americas

Trump’s tax plan calls for deemed repatriation of overseas profits, end to deferral

US presidential candidate Donald Trump’s tax plan, unveiled September 28, includes proposals for a 15 percent tax rate on all business income, limits on interest deductions and other unspecified business deductions, a deemed repatriation of all overseas profits of US multinationals at a 10 percent rate, and an end to deferral. See: Trump plan. More: TaxVox, Fortune, Slate, Bloomberg, The Guardian, CNN, New York Times, Politico, Wall Street Journal.