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Can Good Taxpayers Get A Stamp of Approval?

You’re a consumer with a conscience. In the morning, you don a sweatshop-free outfit, hop into your gas-conserving hybrid, and drive to the local shop for some “fair trade” coffee.


Boris Johnson, US Tax and the Reed Amendment – More Trouble in Store for the Mayor of London?

In February it was reported that Boris Johnson, the high profile Conservative Mayor of London, is planning to renounce his U.S. citizenship. Born in New York to British parents who just happened to be living there at the time, Johnson first threatened to renounce his birthright in 2006 when he was told that he could, of course, enter the U.S. on his American passport, but not his British one.


Malaysia’s New GST: A Brief Comparison with its Former Sales Tax and Service Tax Regime

Prior to April 1, 2015, there was no value added tax or goods and services tax (GST) in Malaysia. Instead, Malaysia levied a Sales Tax and a Service Tax.  The Sales Tax was a federal consumption tax imposed on a wide variety of goods, and governed by the Sales Tax Act 1972. The Service Tax, also a federal consumption tax, was levied on customers who consumed certain taxable services, and was governed by the Service Tax Act 1975. Both were single stage taxes. They were abolished on April 1, 2015, upon the introduction of the Malaysian GST.


US Income Tax Pitfalls for Americans Living Abroad

While the U.S. has traditionally been seen as a low-tax jurisdiction for individuals, with its many exemptions and generous deductions, its rules can bite hard for U.S. expatriates.


Why The OECD’s VAT Proposals Are Causing Some Knitted Brows

 You’d think only the big, multinational conglomerates would get tangled in the complexities of international business taxation—but that’s knot the case.


How Valuable Is Amazon’s Brand? Jeff Bezos Debates …. Jeff Bezos. In Tax Court.

This (probably fictional) quote from Jeff Bezos seems particularly apt right now, as the Amazon.com Inc. founder’s statements about his company and its brand are being used as weapons in a legal fight over billions of dollars in potential taxes—in a courtroom where Bezos was never summoned to speak.


No EU Threshold for VAT on Intra-Community Digital Services – Small UK Businesses Shoulder Steep Compliance Costs

Last December, the BBNA International Tax Blog reported that the U.K. tax authority, HM Revenue & Customs (HMRC), provided limited succour to small businesses facing a steep compliance burden due to new value-added tax (VAT) rules on the supply of digital services to non-business customers within the European Union (EU).


Is There a New Consensus on International Tax Reform?

These days, Washington is more or less a town that runs on Kabuki, and one of the biggest dances of all is the president's annual budget request to Congress.


Italy Misses the January 1, 2015 Deadline for Enacting New Place of Supply Rules for Digital Services

European Union Member States were required to implement new legislation by January 1, 2015 transposing an EU Directive on the place of supply of digital services into domestic law. Bravo, and bravissimo to the 27 EU Member States who met the deadline.


“My Dog Ate My Tax Return”: HMRC Reveals Top 10 Terrible Tax Excuses

The U.K.'s HM Revenue and Customs published the top ten terrible excuses for missing the January 31 tax return deadline, with taxpayers laying blame on pets, work colleagues, and even the President of the United States.


Tax Highlights Awards: Naughtiest Tax Litigant of the Year

A clear win here for the U.K.’s HM Revenue & Customs – barred from taking any further part in a VAT test case because it failed to comply with an “unless” order of the First-tier Tribunal (...


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...


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...


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. 


Tax Highlights Awards: Best Cake Case of the Year

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


Why Amazon.com Is Saying Its Brand Isn't Really All That

Who would argue that Amazon.com Inc.'s brand isn't immensely valuable? Amazon would.


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...


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...


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...


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...


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...


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

The International Tax Blog looks at some of the key developments around the world this week…


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...


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...


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,...


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...


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? ...


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....


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...


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. ...


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...


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...


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...


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...


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...


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...


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...


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...


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...


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...


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...


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...


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...


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...


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...


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...


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...


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,...


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...


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...


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...


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...


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...


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...


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...


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....


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...


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...


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...


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....


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...


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...


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...


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...


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...


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...


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...


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.


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?


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?


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.


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.


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.


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.


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.


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.


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