KPMG’s Week in Tax: 20 - 24 March 2017 | KPMG | US

KPMG’s Week in Tax: 20 - 24 March 2017

KPMG’s Week in Tax: 20 - 24 March 2017

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

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Americas

  • Canada: Both the 2017 federal budget and the Saskatchewan budget were presented and contain tax provisions.

Read TaxNewsFlash-Americas

Europe

  • EU: Tax developments in the EU include Court of Justice of the European Union (CJEU) decisions concerning the amortization of goodwill for shareholdings in foreign companies, Irish air travel tax, and the difference in the Danish tax treatment of domestic and foreign interest income.
  • UK: Two amendments have been made to the hybrid mismatch rules to improve the way the rules will work.
  • UK: The government published Finance Bill 2017, which included business and individual tax provisions.
  • UK: The government announced a 25% tax charge on certain transfers to overseas pension schemes.
  • UK: The application of anti-hybrid and other mismatch rules involving private equity funding in the UK must be considered.
  • UK: All public sector organisations as defined in the Freedom of Information Act 2000 will be responsible for reviewing and identifying the employment status of all workers engaged through personal service companies including those provided through a third party (e.g. an agency) beginning 6 April 2017.
  • UK: New rules, beginning 6 April 2017, deal with how individual landlords renting out residential property obtain relief for finance costs.
  • UK: The Chancellor announced that the planned rise in Class 4 National Insurance contributions (NICs) for the self-employed has been reversed.

Read TaxNewsFlash-Europe

FATCA / IGA / CRS

  • Ireland: The Irish Revenue Commissioners published an updated version of common reporting standard (CRS) frequently asked questions (FAQs). 
  • Ireland: The Irish FATCA and CRS reporting deadline is 30 June 2017 for the calendar year that ended 31 December 2016.
  • Isle of Man: The Isle of Man Treasury issued guidance concerning implementation of the CRS regime.

Read TaxNewsFlash-FATCA / IGA / CRS

Trade & Customs

  • China: The General Administration of Customs issued a decree that applies to the administration on country of origin for importations from the least developed countries that enjoy special preferential tariff treatment.

Read TaxNewsFlash-Trade & Customs

United States

  • Rev. Proc. 2017-25 formally establishes the Small Business/Self Employed Fast Track Settlement program (SB/SE FTS) to provide an expedited format for resolving disputes with Small Business/Self Employed (SB/SE) taxpayers.
  • Rev. Proc. 2017-28 provides guidance to employers on the requirements for employee consent used by an employer to support a claim for refund of overpaid taxes under the Federal Insurance Contributions Act (FICA) and the Railroad Retirement Tax Act (RRTA).
  • The Court of Appeals for the Second Circuit heard a case of cross appeals from orders of the U.S. Tax Court relating to whether the taxpayer underreported income on the 2004 income tax return and whether the taxpayer was subject to self-employment income tax plus a penalty on a $2 million payment received from a now-defunct tax-shelter scheme.
  • Arkansas House Bill 1562, which has been sent to Governor Hutchinson for signature, makes certain changes to how partnership income is apportioned to Arkansas. Specifically, effective for tax years beginning on or after 1 January 2018, a partnership that files an Arkansas partnership return and has income from both within and without Arkansas must apportion income to Arkansas under the Uniform Division of Income for Tax Purposes Act or UDITPA.
  • The California Taxpayer’s Association released a document exploring certain recommendations for improving utilization of the state’s partial sales and use tax exemption for manufacturing and research and development (R&D) equipment, which was adopted in 2013. One of the recommendations is to clarify the “useful life” requirement.
  • The New Jersey Division of Taxation issued a Technical Bulletin discussing what taxes are required to be added back in determining New Jersey Corporation Business Tax.
  • The Pennsylvania Department of Revenue removed a letter ruling on the taxability of canned software support services from its website and presumably revised guidance will be issued in the future.

Read TaxNewsFlash-United States

 

  • The House Judiciary Committee favorably reported H.R. 1393, the ‘‘Mobile Workforce State Income Tax Simplification Act of 2017.’’ If enacted, H.R. 1393 would limit a state’s ability to require withholding and payment of personal income taxes unless an employee (1) is a resident of the state, or (2) has been present and performing employment duties in the state for more than 30 days during the calendar year.

Read TaxNewsFlash-Legislative Updates

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