ITPF/ AEI Conference
Economic Effects of Territorial Taxation
With a Keynote Address by CEA Chairman Jason Furman
March 31, 2014
As Congress deliberates business tax reform options, the international aspects often prove most complex. All G-8 countries other than the United States have “territorial” tax systems that exempt 95-100 percent of qualified dividends repatriated from foreign subsidiaries. This event, which is cosponsored by the AEI and the International Tax Policy Forum, explores the economic effects of territorial taxation. Based on international experience, including Japan and the UK, panelists will examine the effects of international tax rules on: base erosion and profit shifting; repatriation of foreign profits; and cross-border mergers and acquisitions and headquarters location. The event will conclude with a luncheon address by Jason Furman, Chairman of the White House Council of Economic Advisers.
For conference materials, go here
Video link to the conference, go here
Mission and Goals
Founded in 1992, the International Tax Policy Forum (ITPF) sponsors nonpartisan academic research and conferences to promote an informed dialogue on international tax issues. Currently, ITPF's membership includes more than 40 major, U.S.-based multinational companies.
ITPF's membership consists of major U.S.-based multinational companies, representing diverse industries and a huge portion of overall U.S. economic activity.
American Express Company
American International Group
Bank of America
Bank of New York/Mellon
Barclays Capital Inc.
Cisco Systems, Inc.
Dow Chemical Company
E.I. DuPont De Nemours & Co.
Exxon Mobil Corporation
Johnson & Johnson
Johnson Controls Inc.
Mondelez International Inc.
Procter & Gamble Company
State Street Corp.
Time Warner, Inc.
United Technologies Corporation
Walmart Stores Inc.
Latest International Tax Policy NewsTAX BYTES: Reforming tax reform thinking
by Bartlett D. Cleland (Yourhoustonnews.com)
Politico reports that in a recent interview House Majority Leader Kevin McCarthy indicated he is willing to seek tax changes in the next Congress even if the GOP has yet to agree on more comprehensive tax reform legislation. That is good news because comprehensive reform should be the goal, not necessarily one piece of comprehensive legislation. Incremental reforms could make a big difference. Debt Capacity Study Recommended For Inbound Investors in U.S. Companies
For the blog post, go here.
by Aaron E. Lorenzo (Bloomberg Daily Tax Report)
Foreign companies financing U.S. investment should consider a debt capacity study to focus on a variety of complexities and avoid pitfalls, said advisers at Deloitte Tax LLP.
The reason relates to questions that tax authorities might raise over financing acquisitions with debt, Deloitte partner Beth Mueller said on a webcast.
Purchases in the U.S. are often financed through a mix of equity and debt, the latter of which can be used to reduce a company's U.S. tax liability by deducting interest expenses. But a U.S. company receiving the loan needs to show the debt is supportable, or it could get reclassified as equity.
For the story, go here. (subscription required)