The ITPF News Blog is managed by the students at the University of Florida Levin College of Law International Tax LLM Program.
By: Martin Arnold and Ben McLannahan (Financial Times)
Goldman Sachs has warned that it will take a $5bn hit to fourth-quarter profits as a result of president Donald Trump’s tax overhaul, mostly because of a new levy on overseas earnings.
By: Martin Arnold and Ralph Atkins (Financial Times)
Both Shell and Barclays said that while they were likely to benefit over time from the reduction in the US corporate tax rate from 35 percent to 21 percent, they expected to take hefty non-cash charges in their fourth-quarter results. Shell expects to take a $2bn-$2.5bn charge against the accounting value of its “deferred tax assets” in response to a sweeping overhaul of the US tax system that was signed into law by Mr. Trump. Barclays said it expected to record a £1bn charge in its 2017 results.
Spillover from the Haven: Cross-Border Externalities of Patent Box Regimes Within Multinational Firms
By: Thomas Schwab and Maximilian Todtenhaupt
In this paper, the authors analyze the cross-border effects of patent box regimes that reduce the tax rate on income from intellectual property. The authors argue that the tax cut in one location of a multinational enterprise may reduce the user cost of capital for the whole group if profit shifting is possible. This spillover effect of the foreign tax cut raises domestic R&D investment.
By: David Rogers
Is the real lesson from tax reform that Americans rely too much on the income tax to fund their government? Time and again, that box has proven too small a revenue pot to do all that it’s asked by tax writers. And this leads to decisions, however well-intentioned, that contribute to distortions down the road. Most other industrial nations lighten the load on their income tax by combining it with some form of consumption taxes — a hard sell in today’s Washington. But given the partisan carnage of this latest tax fight, the uncertain result, and very real debt crisis facing the nation, is it time for both parties to start looking at other options?
By: Tax Analysts
Over 2,600 bilateral relationships for the exchange of common reporting standard information have been established, the OECD said in a December 21 release, adding that 39 of the 53 jurisdictions committed to first exchanges in 2018 have implemented the international legal requirements.
By: Brian Blackstone (The Wall Street Journal)
Swiss bank Credit Suisse Group AG said that it expects to write-down 2.3 billion francs ($2.3 billion) in tax-deferred assets this quarter as a result of the signing of a sweeping U.S. tax overhaul. The write-down is a one-time accounting adjustment and has minimal impact on the bank’s strong regulatory capital position, the bank says.
By: Mary Swire
India will trial a new system that will enable goods to be sent to other Indian states without border checks under the country's new goods and services tax (GST) regime from February 2018.
By: Penny Sukhraj (Bloomberg BNA)
The European Union's tax chief is optimistic that structural reform of the bloc's tax system—through a common consolidated corporate tax base (CCCTB)—is possible, but admits that “it depends” on governments such as Ireland. Ireland, with its 12.5 percent corporate tax rate—among the lowest in the bloc—is expected to be less inclined to agree to a CCCTB.
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