BEPS

TEI Comments on European Commission Digital Economy Survey

On January 2, TEI submitted responses to the European Commission’s survey regarding “fair taxation of the digital economy,” disagreeing with the Commission’s proposed alternatives to taxing digital commerce.

TEI Comments on OECD Request Regarding the Digitalization of the Economy

On October 12, TEI submitted comments to the OECD regarding their request for input on the tax challenges of the digitalization of the economy, including an interim report to be submitted to the G20 finance ministers.

TEI Comments on OECD Discussion Draft Regarding Revised Profit Split Guidance

On September 8, TEI filed comments with the OECD regarding its public discussion draft on revised guidance on the use of profit splits.

TEI Participates in OECD BEPS Public Consultations

On October 11-12, 2016, TEI Tax Counsel Ben Shreck participated in the OECD’s Public Consultations regarding revised OECD guidance on the use of the profit split method for transfer pricing purposes and the attribution of profits to permanent establishments under the OECD’s BEPS Project. TEI’s planned intervention at the Consultation addressed profit split factors. It is expected that the OECD will issue final guidance on these two topics by the end of 2016.

TEI Comments on BEPS Multilateral Instrument

On June 29, 2016, TEI filed a comment letter with the OECD regarding its request for input on Development of a Multilateral Instrument to Implement the Tax Treaty related BEPS Measures under Action 15 of the OECD’s base erosion and profit shifting (BEPS) project.

TEI Comments on Proposed Country-by-Country Reporting Regulations

On March 21, 2016, TEI submitted comments to the IRS regarding proposed regulations (REG-109822-15) that would require certain U.S. headquartered multinational enterprises to report financial and tax information to the IRS on a country-by-country basis. The Institute's comments focused on the need for the final regulations to be consistent with the final report on Action 13 of the OECD's base erosion and profit shifting (BEPS) project to minimize the administrative burden on businesses and permit flexibility in information reporting.

TEI Comments on BEPS Hard-to-Value Intangibles Discussion Draft

On June 17, 2015, TEI submitted comments on the OECD revised discussion draft on BEPS Action 8: Hard-to-Value Intangibles. The Institute's comments focused on the need to limit the use of ex post information (hindsight) by tax authorities to price previous transfers of intangible assets as such information is not used in similar transactions between unrelated parties. The Institute noted, among other things, that use of hindsight would likely result in additional controversy and disputes between taxpayers and tax authorities.

TEI Comments on Revised OECD Treaty Abuse Discussion Draft

On June 16, 2015, TEI submitted comments on the OECD revised discussion draft on BEPS Action 6: Prevent Treaty Abuse. The Institute's comments focused on the need for certainty in the determination of when taxpayers will qualify for treaty benefits so businesses can plan their cross-border operations. TEI also noted, among other things, that the proposed changes to the OECD model tax convention will create taxation where none has previously existed, in contravention of the traditional purpose of tax treaties to eliminate double taxation and prevent tax evasion.

TEI Comments on BEPS Action 8: CCAs

On May 28, 2015, TEI submitted comments on the OECD BEPS discussion draft Action 8: Revisions to Chapter VIII of the Transfer Pricing Guidelines on Cost Contribution Arrangements (CCAs). The Institute's comments focused on the OECD's new value-based approach to services contributed to a CCA as a departure from the OECD's current transfer pricing guidelines, along with the need for additional examples in the discussion draft, among other things.

TEI Comments on Revised OECD PE Discussion Draft

On May 28, 2015, TEI submitted comments on the OECD revised discussion draft on BEPS Action 7: Preventing the Artificial Avoidance of PE Status. The Institute's comments focused on the need for certainty in the definition of a permanent establishment (PE) in double tax treaties so businesses can plan their operations with an accurate forecast of the amount of tax due. TEI also noted that the proposed changes to the PE definition will significantly broaden its scope and thus increase the compliance and administrative burden on taxpayers.

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