 On June 10, TEI submitted the following comments to the Financial Accounting Foundation (FAF) in connection with the FAF's post-implementation review of Financial Accounting Standards Board Statement No. 109, Accounting for Income Taxes (codified as  On June 10, TEI submitted comments to the Alabama Department of Revenue on its proposed local sales tax regulation governing seller collection responsibilities.  On May 10, TEI submitted a letter to the OECD commenting on recently released draft place of supply guidelines for cross-border sales of services and intangibles.  The responses of Canada Revenue Agency on excise tax matters from the December 3, 2012 liaison meeting are now available. Also available are the agendas and responses from the CRA on income tax matters. On February 19 and 20, 2013, Tax Executives Institute submitted letters in support of legislation in Alabama (HB 264 and SB 223) that would establish a pre-payment, independent tax tribunal. On March 29, 2013, TEI submitted a letter to the Manitoba Ministry of Finance urging the province to establish a statutory four-year limitation period for assessments of the Provincial Sales Tax. On March 4, 2013, TEI filed a letter urging the British Columbia Ministry of Finance to formally adopt a policy of administrative tolerance for Provincial Sales Tax (PST) audits during the first year of the "new" tax. On March 4, TEI submitted a memorandum to the MTC urging it to abandon a proposed project aimed at creating model regulations governing the use of state statutory authority to adjust income and expenses between related parties (i.e., transfer pricing).  IRS urged to refrain from creating exceptions to Rev. Proc. 2011-29; include accounting and legal fees in the procedure's safe harbor. On February 26-27, a delegation of members led by TEI President Carita Twinem met with government officials for the annual liaison meetings. Click here for the agendas. Minutes will be posted in the spring. The Institute's letter refers to TEI's policy statement and encourages state legislators to enact tax tribunal statutes consistent with the ABA's Model Act. The Institute's comments generally focused on three aspects of the Discussion Draft: (i) the meaning of "at the disposal of"; (ii) the time requirement for a PE; and (iii) the use of subcontractors. The Institute says the 70-30 safe harbor for success-based fees should apply to the full amount of IB fees regardless of the timing of payments. The Institute's letter focused on the administrative aspects of the PST Act containing comments designed to assist the Ministry of Finance with the practical, effective, and efficient administration of the new PST. The Institute's letter noted the increasing frequency with which a number of EU Member States have refused to refund VAT to businesses that are in a repayment position and urged the Commission to take necessary actions against those Member States. The Institute commended CRA for efforts and suggested a number of clarifications to the draft Technical Information Bulletin. The Institute's brief urged the Supreme Court of the United States to reverse lower court decisions in Alabama holding that gain from the sale of property used in a taxpayer's unitary business constituted nonbusiness income allocable in full to Alabama. TEI's letter praised the Government of India's Expert Report for recognizing that retrospective tax legislation should be enacted only in exceptional and rare cases. TEI filed comments with the Canadian Department of Finance on a government consultation relating to the use of contingent fee arrangements in prosecuting claims for the Scientific Research & Experimental Development (SR&ED) tax incentives. TEI's letter addressed the OECD's approach to safe harbours for setting transfer prices and urged the OECD to focus on an ex ante approach to transfer pricing timing issues. TEI's letter praised the draft commentary but urged the OECD to make changes to the document that would strengthen the application of the VAT neutrality principle. TEI's letter focused on the OECD's functional approach to return allocation from intangible assets for transfer pricing purposes. The Institute's letter urges the Province to use proceeds from the tax to provide incentives for businesses that make investments in alternative fuel sources, methods for capturing emissions, or other "green" projects. TEI urged the Canadian Department of Finance to revise the foreign affiliate dumping legislation released on August 14. TEI also questioned the cutbacks in the SR&ED tax incentives and the proposed withholding tax treatment of certain deemed dividends. Canada's House of Commons kicked off its annual pre-budget consultations with a request from the Standing Committee on Finance that participants file responses to five standardized questions. TEI's responses to these questions are now available. TEI's letter summarizes the Institute's general support for the HST and makes recommendations to enable the Province and taxpayers to achieve the benefits of reducing the complexity and costs of compliance with the new tax system. In response to an invitation by the BC Expert Panel on Business Taxation, the Institute provided recommendations to make the province's tax system more competitive and to simplify its administration. An anti-avoidance measure in the 2012 Canadian Budget is overbroad, TEI says, urging modifications to facilitate effective cash management and financing for foreign affiliates of non-resident parent companies. TEI's letter, filed with the European Commission, expressed the Institute's general concerns regarding the EC's public consultation paper on instances of double non-taxation in the European Union's internal market. The report of the Global Tax Advocacy Task Force was received by the Board of Directors on March 25, 2012. Its recommendations will be incorporated into the Institute's operations and procedures as part of TEI's Vision 20/20... TEI's comments focus on issues relevant to non-financial institutions under the proposed regulations given the limited focus of the regulations on such issues. TEI recommends clarifying and expanding the exceptions to... The Institute recommended a number of changes to clarify and simplify the temporary regulations issued in December 2011 pursuant to sections 162, 263(a), and 168, relating to materials and supplies, capitalization or deduction of expenditures ... Last week, TEI submitted a letter to the Indian Prime Minister and other senior Indian officials expressing alarm over the retrospective effect of certain tax provisions of proposed Finance Bill 2012. TEI submits concerns to the European Commission on new German documentation requirements for zero-rating of certain supplies. TEI urges the Alabama legislature to pass bill that would create a pre-payment, independent tax appeals tribunal staffed with judges knowledgeable in state tax law. On February 17th, TEI submitted comments to the Organisation for Economic Co-operation and Development regarding the OECD’s discussion draft on the Interpretation and Application of Article 5 (Permanent Establishment) of the OECD Model Tax Convention, released on October 12, 2011. The Institute encourages all states to establish pre-payment, independent tax tribunals presided over by individuals possessing a strong knowledge of the tax law. To improve case load management by the Tax Court of Canada, TEI recommends that Canada Revenue Agency be accorded the ability to settle appeals or litigation of assessments and reassessments based on the "hazards or risks" of litigation. On December 6-7, TEI President David Penney and David Daubaras, the Institute's Vice President for Canadian Affairs, will lead a delegation of members in the 2011 liaison meetings with the Canada Revenue Agency (CRA) and the Department of Finance. TEI submitted a letter to the British Columbia Ministry of Finance recommending improvements to make the PST more efficient and administrable.
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