Recent reports that the European Union is working on legislation to require global companies to publically disclose tax and other financial information is raising red flags for U.S. manufacturers that operate in European countries. The latest information disclosure proposal—coming on the heels of the new information requirements in the Base Erosion and Profit Shifting (BEPS) plan finalized late last year by the Organisation for Economic Co-operation and Development (OECD)— would impose additional compliance costs on companies and force disclosure of sensitive taxpayer information, creating a whole new set of unnecessary business challenges for global companies. Read More
As strong and vocal advocates for comprehensive tax reform that includes lower corporate tax rates and a modern, territorial tax system, manufacturers applaud the Alliance for Competitive Taxation (ACT) for busting some often repeated “myths” about corporate taxes. The ACT’s Tax Facts—released today—corrects the record on some of the misconceptions, misstatements and outright falsehoods that the NAM has been pushing back against for years. Here are some of our favorites: Read More
In comments on January 28, House Ways and Means Committee Chairman Kevin Brady (R-TX) said that the European Commission’s latest efforts to implement recommendations in the Organisation for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) project will make it even harder for U.S. companies to compete in the global marketplace. This is a serious concern for manufacturers and an issue the NAM has raised numerous times with the media, the administration and Capitol Hill. Read More
Late last month, the NAM sent a letter to Rep. Charles Boustany (R-LA), a member of the House Ways and Means Committee, endorsing legislation (H.R. 4297) he recently introduced. The aptly named Bad Exchange Prevention (BEPS) Act addresses some of manufacturers’ concerns with the recommendations in the Base Erosion and Profit Shifting (BEPS) project spearheaded by the G-20 and the Organisation for Economic Co-operation and Development.
Yesterday’s Wall Street Journal op-ed by Douglas Holtz-Eakin at American Action Forum raises some of the same concerns we’ve been hearing from our members about the BEPS recommendations from the Organization for Economic Co-operation and Development aimed at curbing tax avoidance and international profit shifting.
As promised, Treasury yesterday released proposed regulations to implement new country by country reporting requirements included in recommendations on Base Erosion and Profit Shifting (BEPS) approved this fall by the G-20 and the Organisation for Economic Cooperation and Development (OECD).
While the requirement to file country by country reports (CbCRs) on a company’s global financial and tax data impose an additional administrative burden on companies, the proposed guidance makes clear that the reports will be submitted by Treasury to foreign countries under bilateral treaties and information exchange agreements with protections to ensure confidentiality, consistency and appropriate use of the information by foreign countries. The proposed guidance—which covers who has to file the reports and what information is required—also reiterates Treasury’s position that it will suspend the information exchange if a country fails to abide by these conditions.
Today, the Senate Finance Committee met to discuss the Organization for Economic Co-operation and Development’s (OECD) project on Base Erosion and Profit Shifting (BEPS), a set of proposals on international tax policy approved earlier this fall that will place U.S. companies at a competitive disadvantage globally. Testifying with me today was Robert Stack, Deputy Assistant Secretary for International Tax Affairs at the Treasury Department, and Michael Danilack, Principal at PricewaterhouseCoopers. Read More
This weekend, leaders at the G-20 endorsed the Organisation for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) recommendations that were released in October. The NAM continues to be concerned about the negative impact these proposals, if implemented, could have on manufacturers in the United States. Read More
While many of us were enjoying a little R&R in the waning days of August, House Ways and Means Committee Chairman Paul Ryan (R-WI) and Senate Finance Committee Chairman Orrin Hatch (R-UT) were focused on BEPS— the OECD’s Base Erosion and Profit Shifting (BEPS) project.
In an August 27th letter to Treasury Secretary Jack Lew, the Chairmen questioned Treasury’s ability to impose some new tax reporting requirements on U.S. multinational companies, reiterating a request made earlier this summer that Treasury provide them with a memo outlining their legal authority to collect country by country (CbC) information from U.S. companies with global operations. Read More
In a letter yesterday to Treasury Secretary Jack Lew, Senate Finance Committee Chair Orrin Hatch (R-UT) and House Ways and Means Committee Chair Paul Ryan (R-WI) reminded Secretary Lew of the critical need for the Treasury Department to “remain engaged with Congress” on their participation in the on-going Base Erosion and Profit Shifting (BEPS) project at the Organization for Economic Co-operation and Development (OECD). The Chairmen made clear that “[r]egardless of what Treasury agrees to as part of the BEPS project,” it’s Congress’ job to craft U.S. tax policy. Read More