The ITPF News Blog is managed by the students at the University of Florida Levin College of Law International Tax LLM Program.
By Stephanie Soong Johnston
Each country comes from different economic backgrounds, so it's no surprise that they have different views and opinions on how to address the tax challenges of digitalization, Asō added. For countries to reach consensus on a solution by the end of 2020, "we must all bring a spirit of compromise to the table," Asō said. The G-20 should lead by example, he said, because "high-level political engagement and endorsement by G-20 members will make it possible to overcome this hurdle and to close the remaining gaps in our views."
By Jennifer McLoughlin
The OECD’s goal by fall is to release an initial report assessing the impact of various proposals for overhauling the international tax system in the digital age, according to officials.
By Slim Gargouri
Costa Rica’s Ministry of Finance has released a draft resolution implementing VAT rules for nonresidents supplying cross-border digital services in Costa Rica. The country is in the process of converting its sales tax to a VAT, effective July 1. The VAT will be levied on all supplies of goods and services. The standard rate will be 13 percent, but reduced rates of 4 percent, 2 percent, and 1 percent, as well as some exemptions, will apply to specific supplies. Export sales will be zero-rated.
By Thomas Horst
The article assesses what effect the Tax Cuts and Jobs Act had on the effective tax rates (ETRs) of large U.S. nonfinancial corporations based on information in the generally accepted accounting principles financial statements corporations include with their annual SEC Forms 10-K. I evaluate both the TCJA’s one-time adjustments, which mainly affect corporations’ ETRs for 2017, and the TCJA’s permanent adjustments, which mainly affect corporations’ ETRs for 2018.
By Lee A. Sheppard
While we’re waiting for the big Tax Cuts and Jobs Act regulations on June 22, section 956 is still in the law, so there are final section 956 regulations to think about. To recapitulate, global intangible low-taxed income and section 245A regulations are expected by June 22. The GILTI rules will be accompanied by a notice of proposed rulemaking, the scope of which is unclear, according to Raymond Stahl, senior counsel, IRS Office of Associate Chief Counsel (International). Practitioners are particularly concerned about the effective date of the section 245A rules, because companies made interim distributions that they hope will qualify for the dividends received deduction (DRD).
By Todd Buell
The European Parliament is expected to continue to push progressive legislation on tax matters following an election last month that saw eroded support for centrist parties. In recent years the Parliament has advocated laws requiring big corporations to publish their tax affairs and has voted for a common corporate tax base in Europe. It has also expressed support for taxing large digital corporations and pushed for laws that require tax advisers to disclose more of their activities to authorities.
By Alexander Hartley
As G20 countries ratify the OECD’s work on taxing the digital economy, tax executives expressed their concerns to International Tax Review that the body has not moved beyond proposals that they find problematic.
By International Tax Review
Alexandra Readhead investigates whether IMF and OECD proposals on how to tax the digital economy, apply formulary apportionment, shift taxing rights and address profit shifting could apply to the natural resources sector. Alternatively, could source-based taxation improvements hold the answer?
By The Editorial Board
Britain’s next Prime Minister will have the dual challenge of leaving the European Union and setting up the newly independent country for economic success. So it’s a good sign that some top contenders for the Conservative Party leadership—the winner will replace Theresa May—started with tax reform as campaigning began on Monday.
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