KPMG’s Week in Tax: 24 - 28 April 2017 | KPMG | US

KPMG’s Week in Tax: 24 - 28 April 2017

KPMG’s Week in Tax: 24 - 28 April 2017

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

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U.S. tax reform

  • Treasury Secretary Mnuchin and National Economic Council Director Gary Cohn announced at a White House press conference what they called the “core principles” of the president’s plan for tax reform and simplification.
  • The Congressional Research Service released a report entitled “Border-Adjusted Consumption Taxes and Exchange Rate Movements: Theory and Evidence.”
  • KPMG LLP has prepared a chart providing a high-level comparison of key tax reform proposals included in (1) the Tax Reform Act of 2014, as introduced by former Chairman of the House Ways and Means Committee, Dave Camp, in December 2014 (Camp bill), and (2) “A Better Way—Our Vision for a Confident America,” released by the House of Representatives Republican Tax Reform Tax Force on June 24, 2016 (House blueprint).

 

Read TaxNewsFlash-Tax Reform

Africa

  • Nigeria: Baseline data for exporters using the newly resumed “export expansion grant” scheme is due 27 April 2017 for years 2013-2016.

 

Read TaxNewsFlash-Africa

Americas

  • Canada: Nova Scotia Finance Minister Randy Delorey delivered the province’s 2017 budget.
  • Canada: The Canada Revenue Agency (CRA) will hold refunds for good and services (GST) non-compliance starting in May 2017.
  • Canada: Saskatchewan Bill 69 received its first reading.

 

Read TaxNewsFlash-Americas

Asia Pacific

  • Australia: The Senate Committee held a hearing on the taxing of online low-value imported goods; there is potential for delay to the implementation of the legislation.

 

Read TaxNewsFlash-Asia Pacific

BEPS and Transfer Pricing

  • Costa Rica: Guidance requires taxpayers having transactions with related parties to retain supporting documentation of certain corporate information (equivalent to the “Master file”) and company local information (equivalent to “Local file”).

 

Read TaxNewsFlash-BEPS and TaxNewsFlash-Transfer Pricing

Europe

  • Italy: Law Decree no. 50, as passed by the Italian Parliament and enacted 24 April 2017, includes value added tax (VAT) measures.
  • Germany: Questions put to the Court of Justice of the European Union for preliminary rulings concern intra-Community chain transactions.
  • EU: An update on direct tax developments having both domestic and cross-border implications.
  • UK: A discussion on the new corporate interest restriction regime and the debt cap when applying the fixed ratio method.
  • UK: Prime Minister Theresa May called for a snap general election to be held on 8 June 2017. What will become of the longest Finance Bill in the UK’s history?
  • UK: The government is introducing a new trust register and reporting requirements of "beneficial ownership" of trusts.
  • UK: Under the Annual Tax on Enveloped Dwellings regime, if a company or corporate entity owns a UK residential dwelling, valuations on such properties must be updated every five years.

 

Read TaxNewsFlash-Europe

Exempt Organizations

  • The U.S. Court of Appeals for the Seventh Circuit held that the rate of interest that applies on a refund of a tax overpayment made to a nonprofit corporation is the lower interest rate that applies for corporations under section 6621(a)(1).

 

Read TaxNewsFlash-Exempt Organizations

FATCA / IGA / CRS

  • Australia: Updated guidance was released on the automatic exchange of information (AEOI) related to the FATCA and common reporting standard (CRS) regimes.
  • Ireland: An updated version of “frequently asked questions” (FAQs) concerning the common reporting standard (CRS) was released as further guidance for financial institutions preparing and reporting information under the CRS.
  • Malta: The reporting deadline for EU Council Directive 2014/107/EU (DAC2) and the common reporting standard (CRS) has been extended from 30 April 2017 to 30 June 2017 for the year 2016.
  • United States: A congressional hearing was held for the purpose of reviewing “unintended consequences” of the Foreign Account Tax Compliance Act (FATCA).
  • United States: The IRS released a draft FATCA registration form—Form 8957, Foreign Account Tax Compliance Act (FATCA) Registration—proposed for use by financial institutions to register electronically under the FATCA regime.

 

Read TaxNewsFlash-FATCA / IGA / CRS

Trade & Customs

  • The U.S. Department of Commerce released an advance version of an antidumping duty notice concerning certain softwood lumber products imported from Canada.
  • The Bureau of Industry and Security (BIS) of the U.S. Commerce Department released a notice requesting public comments and public hearing on section 232 of the Trade Expansion Act of 1962, to determine the effects on the national security of imports of steel. Comments must be received by May 31, 2017.

 

Read TaxNewsFlash-Trade & Customs

United States

  • The U.S. Court of Appeals for the Federal Circuit affirmed a grant of summary judgment for the government in an action for refund of the federal communications excise tax. The Federal Circuit noted that the company, as a “collector” of the excise tax, did not bear the economic burden of the tax. 
  • An IRS “practice unit” (guidance for IRS personnel) was publicly issued concerning physical presence test for purposes of qualifying for section 911 tax benefits.
  • House Bill 628 has been introduced in the Louisiana House of Representatives. If enacted, House Bill 628 would implement one component—a new commercial activity tax—of the governor’s 2017 Budget Stabilization Plan.
  • The Minnesota Tax Court held that the Tax Commissioner erred when she attempted to adjust a banking group’s apportionment to include the interest income and loans of certain LLCs taxed as partnerships.
  • The Ohio Board of Tax Appeals held that the taxpayer’s particulate removal services were preventative or restorative in nature and necessary for the proper functioning of the draught beer equipment. 

 

Read TaxNewsFlash-United States

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