The ITPF News Blog is managed by the students at the University of Florida Levin College of Law International Tax LLM Program.
Archives: January 2018Subscribe
By: Elodie Lamer
An EU-wide tax on digital businesses’ advertising revenues is gaining traction inside the European Commission, after the commission faced difficulties finding a proper legal basis to tax their turnover as France had suggested. On March 28, the commission will present two legislative proposals to ensure proper taxation on internet giants’ activities in the EU.
By: Shannon Bond (Financial Times)
AT&T beat Wall Street’s expectations for profit and revenue in the fourth quarter as it added more wireless customers than anticipated. Net income was boosted by the US tax overhaul, jumping to $19bn, or $3.08 a share, from $2.4bn, or 39 cents a share, a year ago. The impact of tax reform and regulatory rationalisation will be substantial and positive for the US economy and AT&T, according to AT&T’s chief executive.
By: Patti Waldmeir (Financial Times)
Tax reform and strong aircraft deliveries helped Boeing beat Wall Street’s expectations for its fourth-quarter earnings, as the company predicted higher aircraft deliveries in 2018 and stronger profits.
By: Peter Wells (Financial Times)
Homebuilder DR Horton saw its profit slide in its fiscal first quarter on account of recent changes to US tax laws, but managed to deliver revenue above market expectations.
By: Arthur Beesley (Financial Times)
Ireland’s business-friendly tax regime has drawn legions of multinational companies to the country, boosting tax revenues and prompting political attacks from Donald Trump and Europe. Now concern is growing that Dublin has become too dependent on such taxes, leaving it vulnerable to financial shock.
By: Ben Stupples (Bloomberg BNA)
Multinational businesses are split over whether they should publish their global tax reports amid fears that the public will misunderstand them.
By: Ed Taylor (Bloomberg BNA)
The Brazilian unit of pharmaceutical giant Johnson & Johnson has registered a precedent-setting court victory that saved it from a 150 percent fine on unpaid taxes.
By: Joe Kirwin (Bloomberg BNA)
European Union member nations have tentatively agreed on the scope of pending legislation to regulate tax intermediaries and clamp down on cross-border avoidance schemes, including the key definition of an intermediary.
By: Ben Stupples (Bloomberg BNA)
The U.K. government has come under attack for the tough appeals system behind its “Google tax” that has targeted multinational businesses across the globe.
By: Martin Sullivan
In the long table accompanying this article, we model the effects of these and other major new provisions of the TCJA and see what we can learn about the new law’s overall impact on the balance between foreign and domestic investment. In particular, we calculate an effective tax rate on a $10 million investment in a new factory under four scenarios: (1) in the United States under old law; (2) in the United States under the TCJA; (3) outside the United States under old law; and (4) outside the United States under the TCJA. If the excess of (1) over (3) is less than the excess of (2) over (4), this suggests the TCJA has reduced the tax incentive to invest abroad.
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