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Competitiveness Index

International Tax News Blog

  • Corporate Inversions: Will Treasury Use Subpart F to Attack Inversions? Tax Experts Anticipate Rule

    by Alex M. Parker (Bloomberg)

    As practitioners await possible action from the Department of Treasury to stem the tide of corporate tax inversions, many observers think that a modified Subpart F rule—rather than more sweeping rules to combat earnings stripping—is the likeliest route for regulations.
    For the story, go here. (subscription required)

    By Parker, Alex M., posted on Monday September 15, 2014
  • Profit Shifting: Why U.S. Multinationals Need to Care About BEPS Even if the U.S. Doesn't Change Anything

    by Clark Chandler, Stephen Blough, and Michael Plowgian (Bloomberg)

    Clark Chandler, Stephen Blough, and Michael Plowgian of KPMG write that the OECD guidance on base erosion and profit shifting expected Sept. 16 will affect U.S. multinationals regardless of whether changes in U.S. rules or practices result. Beyond simple compliance with local law changes for MNEs' foreign operations, also likely to be affected are transfer pricing, intangibles ownership and other aspects of global operations.

    For the report, go here. (Subscription required)

    By Chandler, Clark, Stephen Blough, and Michael Plowgian, posted on Monday September 15, 2014
  • Corporate Inversions: Cry for Tax-Code Revamp Stalls Bids To Put Damper on Corporate Inversions

    by Richard Rubin (Bloomberg)

    Republicans and business allies such as House Ways and Means Chairman Dave Camp (R-Mich.) and the U.S. Chamber of Commerce say they know the way to stop companies from changing addresses to cut their tax bills: Overhaul the tax code.
    Yet that call for the first major revision of the U.S. tax system in three decades hasn't translated into action and won't anytime soon. There's no consensus on what changes would prevent companies from fleeing the system. And the inertia in Washington is opening the way to further deals, known as inversions.
    For the story, go here. (subscription required)

    By Rubin, Richard, posted on Monday September 15, 2014
  • Nothing Unpatriotic About Doughnuts to Dollars

    by Diana Furchtgott-Roth (Tax Notes Today)

    In this article, Furchtgott-Roth suggests that inversions are patriotic and that they benefit the U.S. economy because the earnings can be repatriated tax free. Thus, all those earnings can be used for investment or job creation. Despite threats from President Obama, inversions will not vanish until corporate tax rates are lower and the United States moves to a territorial tax system.

    For the viewpoint, go here. (subscription required)

    By Furchtgott-Roth, Diana, posted on Monday September 15, 2014
  • Blanchard Argues Against More Anti-Inversion Rules

    by Kimberly S. Blanchard (Tax Notes Today)

    Kimberly S. Blanchard argues that while Edward D. Kleinbard and others want to change the rules that apply to foreign-parented corporations, she believes those changes should not lead to more anti-inversion rules.

    For the letter, go here. (subscription required)

    By Blanchard, Kimberly S. , posted on Monday September 15, 2014
  • Supersized tax system bad for business

    by Rep Jim Gerlach (The Hill)

    Reactionary regulations and legislation passed in the heat of the moment may provide immediate gratification for some in Washington who simply want to punish companies that move overseas to avoid what is now the highest corporate tax rate of any industrialized nation and, arguably, the most complicated and convoluted Tax Code in all of history.
    However, modernizing and simplifying our antiquated Tax Code is the only effective solution for stopping U.S. companies from shifting their corporate headquarters, their capital, and possibly, American jobs.
    For the blog post, go here.

    By Gerlach, Representative Jim, posted on Monday September 15, 2014
  • Global business survey finds businesses calling for global agreement on tax planning and updated tax rules for a modern, digital economy

    by Grant Thornton (PR Newswire)

    As the OECD prepares to deliver the first phase of its BEPS action plan in Australia this week, the Grant Thornton International Business Report (IBR), a survey of 2,500 senior executives in 34 economies, finds the majority of businesses calling for more transparency on acceptable planning, updated tax rules for a modern, digital economy and the harmonisation of global corporation tax rates.
    Francesca Lagerberg, global leader for tax services at Grant Thornton, said: "We have been tracking business sentiment on the need for more transparency in tax planning since news surrounding the tax practices of large multinationals such as Amazon, Google and Starbucks, broke last year. And the response has been pretty clear: business leaders want things in black and white. They have a responsibility to their investors and shareholders to keep costs down. In their words, simply telling them to pay their 'fair share' is not proving to be a viable alternative to a clear set of rules or principles."  
    For the release, go here.

    By Grant Thornton, posted on Monday September 15, 2014
  • Study: US tax code among world's worst

    by Bernie Becker (The Hill)

    The U.S. has one of the worst tax codes in the industrialized world, according to a new study released Monday.

    The Tax Foundation, a free market group, found that the U.S. tax code ranked 32 out of 34 — ahead of only Portugal and France — among countries in the Organization for Economic Cooperation and Development (OECD).
    Estonia came in first in the Tax Foundation rankings, followed by New Zealand and Switzerland. The Paris-based OECD is a collection of 34 advanced and emerging economies that offers advice on a wide range of economic issues.
    For the story, go here.

    By Becker, Bernie, posted on Monday September 15, 2014
  • We're Number 32!

    by Wall Street Journal Correspondent

    Any day now the White House and Sen. Charles Schumer (D., N.Y.) will attempt to raise taxes on business, while making the U.S. tax code even more complex. The Obama and Schumer plans to punish businesses for moving their legal domicile overseas will arrive even as a new international ranking shows that the U.S. tax burden on business is close to the worst in the industrialized world. Way to go, Washington.
    On Monday the Tax Foundation, which manages the widely followed State Business Tax Climate Index, will launch a new global benchmark, the International Tax Competitiveness Index. According to the foundation, the new index measures "the extent to which a country's tax system adheres to two important principles of tax policy: competitiveness and neutrality."
    The index takes into account more than 40 tax policy variables. And the inaugural ranking puts the U.S. at 32nd out of 34 industrialized countries in the Organization for Economic Co-operation and Development (OECD).

    For the editorial, go here.

    By Wall Street Journal correspondent, posted on Monday September 15, 2014
  • Jeers and Cheers Over Tax Inversions

    by Jeff Sommer (NY Times)

    At this stage of globalization, most American consumers, investors and politicians have tacitly accepted that if a company is profitable, doesn't violate the law and produces appealing products and services, it can operate wherever and however it likes. That's why the furor over tax inversions is so intriguing.
    For the story, go here.

    By Sommer, Jeff, posted on Monday September 15, 2014