Concern Grows Among Multinationals With Senator Blocking Three Treaties

For over 50 years, Bloomberg Tax’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...

Concern is growing among multinational businesses about the action taken by Sen. Rand Paul (R-Ky.) to block the Senate from voting to approve three major U.S. tax treaties with Switzerland, Hungary, and Luxembourg, with some fearing that more tax pacts in the pipeline could stall when they reach the Senate.
Paul, now a member of the Senate Foreign Relations Committee, has had a hold on the three treaties since late 2011 (33 DTR G-5, 2/21/12), and companies are continuing to lobby Congress to get them into force. There also is worry that Switzerland may not be able to fully implement an agreement under the Foreign Account Tax Compliance Act without the treaty that is currently stuck.
As many as seven other tax treaties may be making their way toward the Senate for action. Six are with Spain, Chile, the United Kingdom, Poland, Norway, and Japan. The remaining pact is a multilateral treaty under the auspices of the Organization for Economic Cooperation and Development.
 For full access to this article, please register for a free trial to Daily Tax Report®.

Request Daily Tax Report