FATCA IGAs Double As 2013 Ends

During the last two months of 2013, the number of signed bilateral intergovernmental agreements (IGAs) to implement the Foreign Account Tax Compliance Act (FATCA) doubled, increasing from nine to 18. Despite this significant increase, the total number of agreements that have been concluded is still only 18 (four signed in 2012 and 14 signed in … Continue reading →

FATCA IGAs: Where Are We Now?

In November, Treasury announced that it was engaged with more than 50 countries and jurisdictions to improve international tax compliance and implement FATCA. Most of those countries (48) were identified in a November 8, 2012 Treasury press release. In April, in a “Treasury Notes” blog article, a Treasury official updated the number of jurisdictions with which … Continue reading →

Proposed and Prospective Transfer Pricing Legislation in Australia

On February 13, proposed anti-avoidance and profit shifting legislation was introduced in Parliament for a first reading by the House of Representatives. The bill, Tax Laws Amendment (Countering Tax Avoidance and Multinational Profit Shifting) Bill 2013, would also amend Australia’s transfer pricing regime. The proposed legislation should not, however, be confused with the Tax Laws … Continue reading →

Clarification: Corporate Tax Fairness Act vs. Corporate Tax Dodging Prevention Act

On February 7, Sen. Sanders (I-VT) introduced bill S.250, the Corporate Tax Dodging Prevention Act, with proposed amendments to Code Secs. 901, 904, 952 and 7701. The proposed legislation would end deferral of foreign source income, institute a per country tax credit (904 numerator), eliminate loopholes for big oil, and establish a management and control … Continue reading →

FATCA Reporting

The Hiring Incentives to Restore Employment Act (HIRE Act), signed into law by President Obama in 2010, substantially incorporates the measures designed to stop tax evasion contained in the Foreign Account Tax Compliance Act (FATCA) of 2009. FATCA and Individuals Under FATCA, U.S. taxpayers with specified foreign financial assets that exceed certain thresholds must report … Continue reading →

Overview of the Chapter 4 FATCA Regulations Under T.D. 9610

On January 17, 2013, the Treasury and IRS released the final Foreign Account and Tax Compliance Act (FATCA) regulations under Code Secs. 1471-1474. Enacted in 2010 pursuant to the Hiring Incentives to Restore Employment (HIRE) Act (P.L. 111-147), FATCA is intended to combat offshore tax evasion by U.S. taxpayers with overseas accounts.  According to Deputy … Continue reading →

Transfer Pricing In the News

In the United States, the conceptual foundation for Code Sec. 482 and transfer pricing originated in 1917 but when did transfer pricing become such a global media sensation? Here is a summary of a few key transfer pricing developments and highlights from the headlines (for additional information on the history of transfer pricing, see Transfer … Continue reading →

Exchange of Information: OECD Updates Article 26 of the Model Tax Convention and Commentary

In July, the Organisation for Economic Cooperation and Development (OECD) announced changes to Article 26 of the Model Tax Convention on Income and on Capital and its accompanying Commentary. Article 26 of the OECD Model sets forth the international standard on the exchange of information. The 2012 update to Article 26 of the Model contains … Continue reading →

Survey of Recent Global Transfer Pricing Developments

Ireland On November 26, 2012, the Irish Office of the Revenue Commissioners issued eBrief No. 62/12 regarding Revenue’s approach to monitoring compliance with transfer pricing legislation contained in Part 35A of the Taxes Consolidation Act 1997 (TCA 1997) and the transfer pricing provisions enacted by section 42 of the Finance Act (2010). As amended, Part … Continue reading →

Supreme Court of Canada: GlaxoSmithKline Remitted for Redetermination

To say that the decision in Her Majesty The Queen v. GlaxoSmithKline Inc. was much-anticipated would be a gross understatement. The Supreme Court of Canada rendered its decision in the first transfer pricing case before the Supreme Court on October 18, 2012. The Court held in favor of GlaxoSmithKline (“GSK”) by dismissing the appeal initiated … Continue reading →