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The Bloomberg BNA International Tax Blog is a forum for practitioners and Bloomberg BNA editors to share ideas, raise issues, and network with colleagues. The ideas presented here are those of individuals, and Bloomberg BNA bears no responsibility for the appropriateness or accuracy of the communications between group members.


International Tax

December 17, 2014

HMRC Clarifies Impact of MOSS on Businesses Below U.K. VAT Threshold

The U.K. tax authority, HM Revenue & Customs (HMRC), has clarified the impact on small businesses of the new value-added tax (VAT) rules on the supply of digital services to consumers within...

December 8, 2014

Tax Highlights Awards: Best Supporting Food Case of the Year

Another intriguing distinction drawn by the UK’s Value Added Tax (VAT) regime is that between “animal feeding stuffs” (zero-rated) and “pet food” (standard rated). Most of the time, this...

December 5, 2014

BBNA’s Holiday Season International Tax Quiz

To celebrate the launch of the Bloomberg BNA Premier International Tax Library, we are introducing our first annual Holiday Season International Tax Quiz. So take a break from your year-end reports to revisit some of the year's top -- and zaniest -- tax stories with us. 

December 1, 2014

EU Mini One Stop Shop: Only One Month Left for Suppliers to Register Before New EU Place of Supply Rules Come Into Force

This update is to remind you that for registration to be effective as of January 1, 2015, suppliers must register by December 31, 2015. 

November 24, 2014

Tax Highlights Awards: Best Cake Case of the Year

The UK tax year wouldn’t be the same without a decent case about cakes, and 2014 didn’t disappoint in this regard.  

November 21, 2014

Why Is Saying Its Brand Isn't Really All That

In the quirky world of international corporate taxation, the online giant of the most well-known companies in the world--is arguing that its brand isn't really very valuable.

November 19, 2014

If You Can Point At It, You Can Tax It: The Controversy Over the UK’s Proposed ‘Mansion Tax’

The leader of the UK’s opposition Labour Party, Ed Miliband, has caused a stir by pledging to introduce a ‘mansion tax’ if he becomes Prime Minister after next May’s general election. Under the...

November 14, 2014

Tax Highlights Awards: Biggest Tax Fiasco of the Year

Reflecting on a busy year for international tax developments, we look back at some of the more notable cases in our inaugural Tax Highlights of the Year Awards...

October 24, 2014

On Taxes, Can Obama Do More Unilaterally?

After months of high-pitched public debate, the White House acted on his own last month to curb corporate tax inversions, as President Obama claimed he the issue was too grave to wait for a...

October 13, 2014

Mini One Stop Shop Registration Opens Across Europe

On October 1, 2014, EU Member States launched the Value Added Tax (VAT) Mini One Stop Shop (MOSS) online registration portal for cross-border supplies of electronically supplied services (such as...

October 2, 2014

EU Crackdown on Ireland, Apple; Burger King Deal Goes On; UBS Loses Appeal

Below are just a few of the developments covered in Bloomberg BNA's international tax publications this week:   The European Commission says Ireland’s transfer pricing tax arrangements with...

September 19, 2014

Scotland’s Vote, FTT Plans and Tax-Cutting Budgets

Starting a new weekly round-up of international tax news, the International Tax Blog looks at some of the key developments around the world… The world watched closely this week as Scotland ...

September 19, 2014

The OECD’s Seven BEPS Deliverables: A Quick Tour

The OECD Sept. 16 released its first set of deliverables under its Action Plan on Base Erosion and Profit Shifting, a project to rewrite the global tax system in order to curb the kind of tax...

September 12, 2014

Some Background on the BEPS Items Coming Sept. 16

On Tuesday, Sept. 16, the OECD will deliver to the G-20 work on seven items under its 15-point Action Plan on Base Erosion and Profit Shifting. In anticipation of this release, below is...

September 5, 2014

Designing a Capital Gains Tax for New Zealand: Key Issues

New Zealand currently does not have a capital gains tax (CGT) but it is nonetheless subject to debate with an upcoming election. As New Zealand has a traditionally low tax approach,...

August 20, 2014

UK: A Claim-changer? The Limitation Period and Claims for Repayment of Overpaid Output Tax

In a recent decision, the UK's First-tier Tribunal has held that a taxpayer can change the reasons underlying an unresolved claim for repayment of output value-added tax, even after the expiry of...

August 18, 2014

Executive Action on Inversions? Not So Fast.

Can President Obama deal with corporate inversions-which occur when a U.S. company merges with a foreign competitor in order to create a parent organization with a tax residency abroad--on his own? ...

August 7, 2014

Transfer Pricing Questions Arising in Bankruptcy, Whistleblower Cases

A former employee of Vanguard 's management company files a petition in New York Supreme Court charging that the mutual fund giant has operated as an “illegal tax shelter” for nearly 40 years....

July 18, 2014

What Everyone's Missing About the Inversion Debate

Corporate inversions -- when a U.S. company expatriates by merging with a foreign entity, to plant its tax flag off-shore -- have become a political flash point. Driven by many high-profile...

July 3, 2014

In A Globalized, Online World, Where Is Home?

Suppose you live in a high-tax state--New Jersey, perhaps--but you decide you're tired of paying taxes there. So you decide you'd rather pay taxes in Florida, where there isn't a state income tax. ...

June 27, 2014

IRS Deputy Commissioner (International) Danilack to Resign

Michael Danilack, who has served the Internal Revenue Services in two key international positions, confirmed June 25 that he plans to resign July 2. Dolores W. Gregory's story, which appeared in the...

June 9, 2014

Another Voice for Formulary Apportionment

The debate over whether and how to fix the international corporate income tax system just added another prominent, Nobel Prize-winning voice. Joseph Stiglitz, the former chief economist for the...

May 30, 2014

The World's Movement Toward Tax Transparency

In the past few years, there have been countless news stories about aggressive tax strategies and hordes of cash being stashed in off-shore havens. The sheer abundance of the stories might obscure...

May 16, 2014

Latest from the U.S. on Five of the OECD BEPS Action Items

Robert Stack, deputy assistant secretary for international tax affairs with the U.S. Treasury, gave an update on several items in the OECD's project to combat base erosion and profit shifting at...

April 25, 2014

China: No Unnecessary Service Fees for Chinese Subsidiaries

In a recent letter to the United Nations' tax committee, China's State Administration of Taxation (SAT) made clear its position on service fees: Chinese officials need to be able to verify that...

April 10, 2014

The Apple and the Caterpillar

On April 1, Sen. Carl Levin held the latest in a series of hearings examining what he claims are blatant loopholes in the international tax system.   Previous hearings had called executives...

March 14, 2014

Common Elements in Obama, Camp International Tax Proposals

Like a parakeet and an ostrich, a pair of tax proposals from Democrats and Republicans released over the past few weeks are fundamentally different from afar--but if you start to examine them...

February 28, 2014

A Look Into the IRS’s Reasoning in the Eaton Corp. Case

As the Eaton Corp. case moves toward trial, Transfer Pricing Report staff writer Dolores W. Gregory examines several U.S. Tax Court documents that may shed some light on the IRS’s decision...

February 21, 2014

OECD Announces Revised Timeline for BEPS

The Organization for Economic Cooperation and Development will issue three discussion drafts and hold four public consultations before the end of May as the organization ramps up its...

January 31, 2014

OECD Releases Draft of Radical Country-by-Country Reporting Template

The OECD has just published its draft of “A Model Template of Country-by-Country Reporting” that would require companies for the first time to provide tax administrations with exhaustive...

January 24, 2014

Country-by-Country Reporting on Fast Track at OECD

Country-by-country reporting is the number-one concern for multinational corporations today. The initiative, part of the OECD’s project on base erosion and profit shifting (BEPS), is on a...

November 29, 2013

BEPS Effort Seen Likely to Increase Double Tax Disputes

Michael Danilack, the U.S. Competent Authority, predicted the Organization for Economic Cooperation and Development’s efforts to combat base erosion and profit shifting will increase the pressure...

November 15, 2013

IRS Arguments in Altera and OECD 'Special Measures'

A story in the Nov. 14 issue of Transfer Pricing Report on Altera Corp.’s case in U.S. Tax Court goes to the very heart of a question the OECD is considering in its plan to combat base erosion...

November 8, 2013

OECD Consultation to Kick Off with Country-by-Country Reporting

The Organization for Economic Cooperation and Development will begin its Nov. 12-13 consultation on transfer pricing matters with a discussion of country-by-country reporting. Action 13 of the...

October 18, 2013

Is Ireland Closing Its Tax Loopholes? Experts Doubt It

Transfer Pricing Report's Alex M. Parker explores Ireland's plans, announced Oct. 15, to change its tax laws regarding "stateless" income.   The Republic of Ireland got a bit of press...

September 19, 2013

Tax Court Rules in BMC; Latest in Amazon, Eaton, Other Cases

Transfer Pricing Report's Dolores Gregory rounds up the latest U.S. Tax Court developments in this story, published in today's issue of Transfer Pricing Report .   In transfer pricing cases...

September 5, 2013

Former Treasury Official Critiques OECD White Paper

Former U.S. Treasury Associate International Tax Counsel David Ernick spoke with Bloomberg BNA Transfer Pricing Report's Kevin Bell last month about the OECD's white paper on documentation. Below is...

July 25, 2013

New BBNA App Offers Expert Tax Research. Wherever. Whenever.

BBNA subscribers can now stay connected to the Bloomberg BNA Tax and Accounting Center, any time and from anywhere with our new Tax Center App! This free app provides comprehensive,...

July 12, 2013

BEPS: The Six Pressure Areas

With the Organization for Economic Cooperation and Development to present its plan on base erosion and profit shifting one week from today, a review of what's at stake seems in order. Below is a...

July 5, 2013

The Internship--and Google's Sales Personnel

“The Internship” isn’t exactly a movie that you’d expect to get into complex issues of international tax. But the dopey, crude comedy – in which Owen Wilson and Vince Vaughn play two...

June 27, 2013

Robert Cole Remembered

Robert Cole, who worked in the field of transfer pricing for many years, died last month at age 81. In addition to improving the field he worked in, Bob also sought to improve Transfer Pricing...

May 2, 2013

D.C. Transfer Pricing Challenge Moves Toward Trial

The District of Columbia Office of Tax and Revenue scored a significant victory April 23 in a long-running battle to defend its use of a controversial method of transfer pricing. [ BP Products...

April 18, 2013

Uncertainty in the Financial Services Area

In today’s issue of Transfer Pricing Report, practitioners from Mayer Brown LLP make a case for seeking a financial services advance pricing agreement, pointing to increased uncertainty under...

April 4, 2013

Routine Transfer Pricing Is Not Tax Evasion, Company Executives Say

During Bloomberg BNA and Baker & McKenzie's transfer pricing conference in Paris last month, tax executives spoke about the growing problem of reputational risk and the tendency of the general...

March 21, 2013

Chinese Official Speaks to Human Cost of Location Savings

Those who work in the transfer pricing area are used to thinking in terms of technical analysis: applying one of the five OECD-sanctioned pricing methods, calculating a range of results from...

February 7, 2013

The U.S.-India MAP Impasse: Not the First Case of Stalled Negotiations with a U.S. Trading Partner

U.S. double tax negotiations with India are at an impasse, according to IRS Deputy Commissioner (International) Michael Danilack. At the Pacific Rim Tax Institute in Palo Alto, Danilack—the U.S....

January 24, 2013

U.S. APAs: Impressive Output, But How Long Can the IRS Keep This Up?

Today’s issue of Transfer Pricing Report had the following items on advance pricing agreements: 1. U.S. statistics from the Advance Pricing and Mutual Agreement Program director showing that in...

January 17, 2013

Bloomberg BNA Transfer Pricing Forum to Address Paris Conference

Frequently in transfer pricing, taxpayers must look to case law to answer questions not adequately addressed by either the OECD guidelines or the relevant country’s regulations. In the area of...

January 16, 2013

Uncertainty Prevails on Pricing of Related-Party Guarantee Fees

As noted recently by members of an American Bar Association committee, the pricing of related-party guarantee fees is an area of “tremendous uncertainty.”  The adoption of the U.S. services...

January 10, 2013

Public Concern, Influence of China, India Shape Global Tax Policy in 2013

Developments over the past year have done much to awaken public concern about the loss of tax revenue from companies' transfer pricing practices, with hearings in the U.S. Senate and in U.K....

December 13, 2012

OECD Weighing Importance of Legal Agreements Versus Comparables

In the lead section of today's Transfer Pricing Report, business practitioners and members of the Organization for Economic Cooperation and Development's Working Party No. 6 tackle the question of...

December 7, 2012

OECD Intangibles Draft: Broader Definition, Questioning of Taxpayers' Business Structures Draw Criticism

The OECD’s discussion draft on intangibles has generated more than 1,000 pages of comments from practitioners and business groups, and the debate over many of the positions taken in the draft...

November 30, 2012

Danilack Speaks to U.S. Policy on Negotiating APAs with India

In the Nov. 29 issue of Bloomberg BNA’s Transfer Pricing Report, Michael Danilack, the U.S. Competent Authority, confirmed that he is cautious about endorsing advance pricing agreements with...

October 3, 2012

Bloomberg BNA Tax Policy Summit: Post-Election Answers to “What Now”

“Taxmaggeden,” new reporting requirements under “Obamacare,” and competing tax reform initiatives are just some of the uncertainties that await corporate tax professionals after the November...

September 6, 2012

Safe Harbors Gain Momentum

Safe harbors have become a big part of the transfer pricing debate over the past year. This is not surprising given the ever-greater need for certainty and the growing discomfort—from some sectors...

August 9, 2012

Is Altera the case the IRS has been waiting for?

As reported in today’s issue of Transfer Pricing Report, two recent U.S. Tax Court petitions filed by Altera Corp. almost certainly represent the IRS’s chosen litigating vehicle for the issue of...

July 26, 2012

The Perfect Is the Enemy of Timely APA Completions

Almost exactly a year ago, the IRS announced that its Advance Pricing Agreement program would leave the Office of Associate Chief Counsel (International) and merge with the competent authority...

May 4, 2012

UDATE: Transfer Pricing Developments Panel Broadened to Include New Speaker, Practical Experiences

The June 6 panel on transfer pricing developments, rather than focusing solely on the BRICS countries (Brazil, Russia, India, China, and South Africa) will consider emerging economies overall.

April 27, 2012

The OECD and the Future of Global Transfer Pricing

Today, the world’s taxing authorities are looking for more revenue from increasingly limited sources. Many developing nations, eager for their fair share of the tax pie, are enacting transfer pricing rules. But what form should those rules take?

April 19, 2012

Transfer Pricing Report Celebrates Its 20th Anniversary

Today’s issue of Transfer Pricing Report is a milestone for the publication: we’ve now been reporting on these issues for 20 years! So how have things changed?

April 10, 2012

Current and Former U.S. Officials, Local Country Private Practitioners to Tackle Issues of Operating in BRIC Countries

Multinational companies operating in the BRIC countries face some daunting challenges. In Brazil, government-imposed profit margins cause frequent double taxation. In Russia, OECD-style transfer pricing rules were adopted only last July.

April 3, 2012

Staff Time Devoted to Startup of APMA Program Likely Caused Low Completions in 2011, IRS Officials Say

The Internal Revenue Service’s annual statutory report on advance pricing agreements for 2011, released April 2, shows a drop in both completed APAs and new cases filed, with completions down to 43 from 69 from 2010 and applications down to 96 from an all-time high of 144 the previous year.

March 23, 2012

June 6 Panel: The Challenges of Transfer Pricing for Management Fees, Guarantees, and Other Intra-Group Financings.

With little in the way of formal guidance from the IRS or the OECD on the issue, expert panelists at the June 6-7 Bloomberg BNA/Baker & McKenzie transfer pricing conference will consider intercompany pricing of management fees, guarantees, and intragroup financing. The discussion will focus on the stringent conditions that multinational companies face in many jurisdictions to deduct certain intercompany service charges and the best practices for minimizing the possibility of double taxation.

March 15, 2012

Kickoff Panel June 6: The U.S. Tax Agenda and Its Impact on Transfer Pricing

Multinational companies attempting to plan for the future face the unprecedented challenges of a continuing global economic crisis and a constantly changing tax law environment. The pressure for added tax revenues and the perception that the present U.S. system needs reform make long-term planning difficult.

March 12, 2012

Furthering the Debate over Formulary Apportionment and the Arm's-Length Standard

In his article, “Challenging the Status Quo: The Case for Combined Reporting,” Michael McIntyre, a professor at Wayne State University Law School, makes the case for combined reporting with formulary apportionment.

February 1, 2012

Incoming Saint-Amans Sees OECD Moving 'Back to Basics' in Transfer Pricing Approach

Pascal Saint-Amans, who takes office today as head of the Organization for Economic Cooperation and Development's Center for Tax Policy and Administration (CTPA), spoke with Bloomberg BNA correspondent Rick Mitchell about his outlook on the current global tax scene and his plans for the CTPA.

June 20, 2011

One Small Step for Man…One Less Duplicate Information Reporting Requirement for Certain Corporations

2011-06-20 On June 9, 2011, the IRS announced that the duplicate filing requirement for Form 5472 will no longer be required.   In T.D. 9529, 76 Fed. Reg. 33997 (6/10/11), the IRS explained that duplicate reporting in the Form 5472 context is no longer necessary due to technological advances in electronic p

June 17, 2011

Is the IRS Changing Its Approach to Cost Sharing?

At the kick-off to the BNA-Baker & McKenzie transfer pricing conference June 8, keynote speaker Sam Maruca — the IRS's newly appointed director of transfer pricing operations — indicated the Service may be turning its back on the much-criticized September 2007 coordinated issue paper on cost sharing buy-ins.

June 10, 2011

Repatriation Proposals Heat Up

On May 11, a bipartisan group of six Congressmen introduced H.R. 1834, the Freedom to Invest Act of 2011. The bill, whose lead sponsors are Ways and Means Committee member Kevin Brady (R TX) and Jim Matheson (D UT), would

May 18, 2011

Happy Repatriation Holiday

Recent consideration of a repatriation holiday in order to encourage domestic investment and job creation has largely centered on differentiation from the 2004 holiday, which, with the benefit of hindsight, yielded mostly stock buybacks and dividends. The proposal put forth by Rep. Kevin Brady (R-Texas), which has

May 18, 2011

Danilack Discusses Reorganization, Transfer Pricing Audits

As reported in today's Daily Tax Report, IRS Deputy Commissioner (International) Michael Danilack on February 25 discussed the implications of the recent reorganization that created the Large Business & International Division in the IRS.

May 18, 2011

IRS Makes New Offer for Offshore Accounts

On February 8 the IRS unveiled its second voluntary disclosure program for U.S. taxpayers with undisclosed foreign financial accounts. The program bears many similarities to the first disclosure program that ended on October 15, 2009, which resulted in approximately 15,000 taxpayers disclosing their offshore

May 18, 2011

Regulatory Suspense: Foreign Tax Credit Splitter Arrangements

Even as interest in a U.S. territorial system of taxation finds new life amid murmurs of comprehensive tax reform the IRS is occupied with issuing guidance central to a hallmark of the infamous worldwide system of taxation that the United States currently employs, i.e. the foreign tax credit. In December 2010

May 18, 2011

IRS Falls Short on Exchange of Information

Despite increased efforts to crack down on international tax cheats, the IRS remains lacking in the use of some of the basic tools at its disposal. As reported by BNA in the January 26 Daily Tax Report , Swedish broadcaster SVT recently determined that the Swedish national tax agency ( Skatteverket ) has failed

May 18, 2011

Good News for Foreign Investors in U.S. Treasuries: Favorable Rules for Sourcing Fails Charge Income Adopted

With the holiday season in full swing and a gush of last-minute Congressional activity, one would not be remiss for having overlooked the adoption of T.D. 9508 (75 Fed. Reg.76262 (12/8/10)). However, the temporary/proposed rules represent welcome news for foreign holders of U.S. Treasuries. More specifically