World Business Organization Issues Digital Economy Statement

The International Chamber of Commerce has proposed a new framework of internationally established tax principles, such as making tax proposals for the digital economy profits-based, applying the same principles of taxation to all forms of business, and eliminating double taxation in tax rules and systems.

 By Tax Analysts

Senator Seeks Exception From BEAT for Servicing Agreements

Sen. Thom Tillis, R-N.C., has requested an exception to the base erosion and antiabuse tax under section 59A for payments made by U.S. manufacturers to their foreign affiliates that are service centers because that legislation was never intended to capture manufacturers providing services to unrelated customers outside the United States and would defeat the purposes of the BEAT.

 By Tax Analysts

Memo Supports IRS's Authority to Address GILTI Expense Allocation

An individual has submitted a memorandum stating that Treasury and the IRS have ample authority to eliminate or significantly limit the allocation of U.S. shareholder expense to income in the global intangible low-taxed income, foreign tax credit basket.

 By Tax Analysts

Australia Issues Ruling On Hybrid Mismatch Rules

By Mary Swire

The Australian Taxation Office has opened a consultation on a draft Law Companion Ruling on the targeted integrity rule that will apply under the new hybrid mismatch regime.

Austria Announces Five Percent Digital Tax

The Austrian Government announced on April 3, 2019, a package of tax measures aimed at the digital economy, including a five percent tax on revenue derived from the sale of digital advertising services and the removal of the low-value VAT exemption threshold.

Taxing the Digital Economy Post BEPS ... Seriously

By Andrés Báez and Yariv Brauner

For years the advent of the digital economy has left countries stumped in their attempt to tax income earned by foreign firms without physical presence within their jurisdiction. International organizations and their member countries have failed in their attempts to tweak the rules of the international tax regime and address these challenges presented by the digital economy. This article argues that such conservative approach could not work, and fundamental reform is inevitable.

Investors want a global standard for MNE tax disclosures

By Danish Mehboob

Investors are using multinational companies’ tax disclosures, such as country-by-country reports, to inform their investment decisions - and want consistent disclosure formats to make comparisons easier.

Why more tax reform is inevitable

By Joseph Minarik

The 2017 tax law looks appealing to many citizens because it handed out a lot of money that would otherwise have gone to the Treasury. However, the oversized budget deficits, caused in part by the unavoidable aging of our population, will force lawmakers to revisit that tax law. The American people should be prepared for another very different dose of tax reform.

Germany's Scholz Wants Progress on Global Corporate Taxation

By Reuters

German Finance Minister Olaf Scholz told Reuters in an interview on Wednesday he would urge financial leaders during meetings in Washington later this week to aim for a minimum level of corporate taxation globally.

Elizabeth Warren Proposes New Corporate Tax

By Richard Rubin

Democratic presidential candidate Elizabeth Warren is proposing a new 7% tax on the largest, most profitable U.S. companies, a move that would increase corporate tax collections by about 30% over the next decade.