TEI Provides Submission in Response to British Columbia 2023 Consultation on PST Application for Partnerships
On December 23, 2023, TEI provided a submission to the British Columbia ("BC") Minister of Finance as part of the 2023 Consultation on the Provincial Sales Tax Application to Partnerships. TEI's comments included support for the transition to recognize BC partnerships as separate legal persons for purposes of PST and a recommendation that certain rules for partnerships mimic those for corporations.
TEI Submits Comments on Form 6765, Credit for Increasing Research Activities
On October 31, 2023, TEI submitted comments on the proposed changes to Form 6765, Credit for Increasing Research Activities. TEI's comments included both general comments and comments on specific lines. The general comments focused on concerns over the unreasonable workload and burden imposed by the proposed changes.
TEI Submits Comments on Notice 2023-64 and CAMT
On October 12, 2023, TEI submitted comments in response to a request for comments in Notice 2023-64 regarding the Corporate Alternative Minimum Tax. TEI's comments included recommendations for the AFSI calculation with regard to marked-to-market gains and losses, the potential duplication of income with respect to CFCs, depreciation method changes, and foreign parented entities.
TEI Submits Comments on Notice 2023-2 and the Stock Repurchase Excise Tax
On March 20, 2023, TEI submitted comments in response to a request for comments in Notice 2023-2, which provided guidance on the stock repurchase excise tax. The comments requested carve-outs from the tax for redemptions of non-participating, non-convertible preferred stock and addressed the funding rule and related per se rule that were introduced in the notice. In particular, the comments requested either the removal of the rules from future guidance or a significant narrowing of the rules as they are overbroad and go beyond the literal language and purposes of the statute.
TEI Comments on IRS Notice 2023-7 Regarding the New Corporate AMT
On March 20, 2023, TEI submitted a letter to the Internal Revenue Service commenting on Notice 2023-7, which provides initial guidance on the new corporate alternative minimum tax (CAMT) imposed by the Inflation Reduction Act of 2022. TEI's comments included the need for transition rules and penalty relief, adjustments to the determination of adjusted financial statement income (aka AFSI), among other things. TEI's comments were prepared under the aegis of the Institute's Tax Reform Task Force, whose Chair is Jason Weinstein.
TEI Submits Comments Regarding Proposed Canadian 2% Buyback Tax
On February 23, 2023, TEI submitted comments to Canadian Finance Minister Chrystia Freeland regarding the proposed Canadian 2% tax on share buybacks. TEI took the view that Canada should not implement a share buyback tax. Should Canada implement such a tax, however, the Institute's recommendations included that the tax be more closely aligned with the U.S. version of the tax with respect to both the tax rate and exclusions from the U.S. tax. TEI's comments were prepared under the aegis of its Canadian Commodity Tax Committee, whose Chair is Steve Saunders.
TEI Submits Comments on Draft Form RC312 Under Canada's Mandatory Disclosure Rules
On February 13, 2023, TEI filed comments with the Canada Revenue Agency regarding Draft Form RC312 - Reportable Transaction and Notifiable Transaction Information Return. TEI's comments primarily concerned the volume of information required by the form, as well as the unclear nature of several provisions in the form. TEI's comments were prepared under the aegis of its Canadian Income Tax Committee, whose Chair is Steve Saunders of Atco. Benjamin R. Shreck, TEI Tax Counsel, coordinated the preparation of the Institute's comments.
TEI Comments on OECD Pillar Two GloBE Tax Certainty Consultation
On February 3, 2023, TEI provided comments to the Organisation for Economic Co-operation and Development ("OECD") regarding its public consultation on GloBE tax certainty under the OECD's two pillar approach to the tax consequences of the digitalization of the economy. The Institute's comments focused on preventing and resolving tax disputes arising from the GloBE rules. TEI recommended the OECD certify that jurisdictional laws implementing the GloBE rules are consistent with those rules, required jurisdictions adopting the GloBE rules commit to dispute resolution, among other things.
TEI Comments on OECD Pillar Two GloBE Information Return Consultation
On February 3, 2023, TEI submitted comments to the Organisation for Economic Co-operation and Development ("OECD") regarding the GloBE Information Return under Pillar Two of the OECD's project on the digitalization of the economy. The Institute's comments primarily focused on the ways to reduce the volume of information required under the return, by both eliminating information that is reported via other means and reporting on a jurisdictional basis rather then entity-by-entity.
TEI Submits Comments on Proposed Canadian EIFEL Rules
On January 31, 2023, TEI filed comments and recommendations with the Canadian Department of Finance regarding proposed excessive interest and financing expense limitation (EIFEL) legislation. The Institute's recommendations included delaying the effective date of the rules, providing transition relief, and not applying the EIFEL rules when computing the foreign accrual property income of controlled foreign affiliates. TEI's comments were prepared under the aegis of its Canadian Income Tax Committee, whose Chair is Steve Saunders. Benjamin R.