KPMG’s Week in Tax: 29 January - 2 February 2018 | KPMG | LU
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KPMG’s Week in Tax: 29 January - 2 February 2018

KPMG’s Week in Tax: 29 January - 2 February 2018

Tax developments or tax-related items reported this week include the following.

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Transfer Pricing and BEPS

  • Jamaica: Taxpayers having engaged in transactions with a connected or affiliated company during assessment year 2017 must file a declaration (Schedule 8 – Declaration of Connected Person Transactions) with their income tax returns by 15 March 2018.
  • Australia: The due date for country-by-country (CbC) reporting, Master file, and Local file for Australian taxpayers with a December year-end has been extended to 15 February 2018.

 

Read TaxNewsFlash-Transfer Pricing

Americas

  • Canada: Federal carbon tax legislative and regulatory proposals would apply to any province or territory that does not implement a carbon pricing system before 2019 if certain standards are not met.
  • Canada: There are no new tax changes in New Brunswick’s budget for 2018.
  • Colombia: A “tax calendar” lists due dates relating to withholding taxes, value added tax (VAT), excises taxes, and other tax return items for 2018. The tax calendar was prepared by the KPMG member firm in Colombia.

 

Read TaxNewsFlash-Americas

Europe

  • Serbia: The deadline for filing individual income tax returns for 2017 is 15 May 2018.
  • Netherlands: The Amsterdam Court of Appeals, in a case concerning whether the allocation of bonus shares falls under the fixed exemption of the work-related costs rules, held that the allocation of bonus shares to a select group of employees was “unusual” and therefore not within the standard criterion under generally accepted standards for purposes of the work-related costs rules.
  • Finland: A draft of proposed interest deduction limitation rules, based on the Anti-Tax Avoidance Directive (2016/1164/EU), would expand the scope of the current rules significantly, and if enacted, would be effective beginning in 2019.

 

Read TaxNewsFlash-Europe

FATCA / IGA / CRS

  • Malta: An updated version of guidelines was released for implementation of the EU Council Directive 2014/107/EU (DAC2) and the common reporting standard (CRS) to help financial institutions comply with the CRS requirements.
  • Hungary: An updated version of technical guidance provides general guidance on the methods to be used in the preparation and submission of FATCA reports.

 

Read TaxNewsFlash-FATCA / IGA / CRS

United States

  • Proposed regulations address how partnerships and their partners with adjusted tax attributes would take into account partnership adjustments under the centralized partnership audit regime.
  • The IRS updated a list of “frequently asked questions” (FAQs) with respect to the recharacterization rules of Roth IRA contributions under the new U.S. tax law (Pub. L. No. 115-97).
  • Notice 2018-14 addresses tax withholding changes of the new U.S. tax law (Pub. L. No. 115-97), and states that the 2018 Form W-4 may not be released until after 15 February 2018.
  • The U.S. Tax Court released a “reviewed opinion” in which the court concluded that the Virgin Islands Bureau of Internal Revenue’s sharing of information with the IRS amounts to the filing of a federal income tax return.
  • The Louisiana Department of Revenue issued a notice of intent to adopt a regulation providing guidance on the related-party addback requirements—specifically, when certain intangible expenses, interest, and management fees are subject to the addback rules—effective for tax years beginning on or after 1 January 2016. 
  • A Michigan appellate court concluded that services performed by an attorney in Detroit, on behalf of a client located outside the city, were not sourced to Detroit for purposes of the city’s income tax. 
  • The Ohio Board of Tax Appeals found that a “blender” and related equipment used in hydraulic fracturing (“fracking”) were not directly used in the production of crude oil and natural gas and thus were not exempt from use tax. 
  • A Texas administrative law judge denied a government contractor’s claim for a franchise tax refund. The taxpayer asserted that it had incorrectly sourced its receipts as if it were selling services, rather than an intangible (software), and filed an amended report changing its methodology for sourcing receipts from sales of intangibles. However, the taxpayer had not established by a preponderance of evidence that franchise taxes were erroneously collected or paid.

 

Read TaxNewsFlash-United States

 

  • The IRS issued a release reminding Alaska native corporations and Alaska native settlement trusts of certain benefits in the new tax law (Pub. L. No. 115-97).

 

Read TaxNewsFlash-Tax Reform

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