Legislative update: Finance chairman expresses concerns with BEPS project

Senate Finance chairman expresses concerns with BEPS

Senate Finance Committee Chairman Orrin Hatch (R-UT) in a speech on the Senate floor expressed concerns with the OECD’s base erosion and profit shifting (BEPS) project and called on the Obama Administration to work with Congress on the BEPS proposals.

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In the July 16 speech, available on the Finance Committee’s website, Chairman Hatch said:

… international cooperation and consensus are important. I don’t object to unified actions toward common goals and shared objectives. But, when the resources of U.S. taxpayers are on the line—as they appear to be with the BEPS project—Congress must play a significant role.

 

Hatch further stated that Congress needs more, detailed information regarding the costs relative to the benefits of the BEPS proposals, and he requested the Government Accountability Office (GAO) provide an in-depth analysis of issues, such as whether the IRS is capable of sharing sensitive tax information with foreign tax authorities without violating the confidentiality of U.S. businesses.

 

Hatch further asked the GAO to look into how these policies would affect the U.S. economy.

I urge Treasury to work more closely with Congress on this and to not tie our hands as we move toward tax reform by consenting to bad outcomes. I urge them to consider the interests of U.S. taxpayers and to not make any commitments that would impose unnecessary burdens on American companies and put them at a competitive disadvantage.

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