TEI Submits Comments on CAMT Proposed Regulations
On January 16, 2025, TEI submitted comments on the proposed regulations on the Corporate Alternative Minimum Tax ("CAMT"). The Tax Reform Task Force, whose chair is Andreia Verissimo, in coordination with TEI Tax Counsel Kelly Madigan, spearheaded the comments. TEI’s comments addressed foreign tax credit considerations and provided recommendations for adjustments to AFSI related to the treatment of investments in certain financial instruments and the treatment of certain covered recognition transactions, among other concerns.
Pillar Two Reporting Simplification - TEI Comments
On December 17, 2024, TEI submitted comments to the OECD recommending it simplify the Pillar Two reporting requirements. TEI recommend the OECD help coordinate the timing of payments, adjustments, and refunds across jurisdictions, which would reduce MNE's compliance burden. Other recommendations included implementing a robust exchange of information system and a template information reporting form. TEI's comments were drafted by members of its U.S. International and EMEA Direct Tax Committees, along with the Tax Reform Task Force. Benjamin R.
TEI Submits Comments on 2024 British Columbia Budget Changes to the Provincial Sales Tax Definition of “Software”
On March 29, 2024, TEI provided a submission to the British Columbia ("BC") Minister of Finance in response to the 2024 BC provincial budget and accompanying bill that introduce changes to the definition of “software” for purposes of the BC provincial sales tax. TEI's comments addressed concerns over retroactive legislation and the breath of the Ministry's definition of "software," among other issues.
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.