March 28, 2021
U.S. Tax This Week for March 26
Ernst & Young's U.S. Tax This Week newsletter for the week ending March 26 is now available. Prepared by Ernst & Young's National Tax Department in Washington, D.C., this weekly update summarizes important news, cases, and other developments in U.S. taxation.
Top of the Week
Senate Finance holds international tax hearing
The Senate Finance Committee's March 25 international tax hearing largely focused on a brewing battle between the Biden Administration and some congressional Democrats on the one hand and Republicans and much of the business community on the other over dramatically changing the international tax provisions in the Tax Cuts & Jobs Act (TCJA), including raising revenue by changing the global intangible low-taxed income (GILTI) provisions, the base erosion and anti-abuse tax (BEAT), and the foreign derived intangible income rules. Democratic witnesses made the case for international tax changes to fund priorities like infrastructure and other proposals in the President's Build Back Better plan and made the argument that the TCJA created incentives for US companies to move tangible assets and jobs outside the United States. Other witnesses and Republican committee members suggested there's no need to change the provisions. Pam Olson, Former Assistant Secretary for Tax Policy, said she is unaware of any company that has moved operations to take advantage of GILTI. There was also a lot of discussion over whether increasing US taxes would reignite interest in inversions. EY Tax Alert 2021-0628 has details.
Extended delay in effective and transition dates of US Department of Labor's high-skilled wage rule discussed
The Department of Labor (DOL) on March 22, published in the Federal Register a delay in the effective date of the high-skilled wage rule until November 14, 2022, with an applicability date of January 1, 2023. This final rule was scheduled to be formally implemented on March 15, with wage levels taking effect on July 1, 2021. EY Tax Alert 2021-0619 has details.
The many faces of the marketplace facilitator: How sales and use tax rules aimed at marketplaces have affected multiple industries (March 30)
Since the U.S. Supreme Court’s decision in South Dakota v. Wayfair nearly three years ago, sales and use tax developments have been dominated by the imposition of new requirements on marketplace facilitators. This Thought Center Webcast will feature leaders from Ernst & Young LLP’s Sales and Use Tax Practice, who will discuss how these laws, designed to capture sales made by smaller marketplace sellers, have also created multiple new compliance obligations for larger businesses that are not primarily engaged in retail activities.
Tax in the time of COVID-19: Update on legislative, economic, regulatory and IRS developments (April 2)
During this Thought Center Webcast, Ernst & Young professionals will provide updates on: (i) US economy, elections and tax policy; (ii) Breaking developments; and (iii) What’s happening at the IRS.
Why the tax controversy department of the future should be built now (April 8)
During this Thought Center Webcast, Ernst & Young professionals will discuss concerns about the efficacy of untested dispute resolution processes related to potential new ways to tax cross-border activity may add to future risks.
ASEAN-6 panel discussions: Integrated regional value chains – Part 1: Consumer products and medical technology (April 20)
During this EY Webcast, Ernst & Young professionals will be hosting sector-focused discussions to explore answers to many open questions. Guest panelists from government investment agencies in key ASEAN countries will be sharing insights on individual country strengths and how complementary segments of a value chain can be optimized across multiple ASEAN locations.
ASEAN-6 panel discussions: Integrated regional value chains – Part 2: Electronics and automotive (April 27)
During this EY Webcast, guest panelists from government investment agencies in key ASEAN countries will be sharing insights on individual country strengths and how complementary segments of a value chain can be optimized across multiple ASEAN locations.
Recent Tax Alerts
— Mar 26: German Government agrees on draft bill introducing “check-the-box” elections for partnerships and further changes (Tax Alert 2021-0629)
— Mar 26: Luxembourg | Protocol to Double Tax Treaty with Russia has entered into force (Tax Alert 2021-0626)
— Mar 26: Spanish Supreme Court issues favorable decisions on reclaims by non-Spanish sovereign funds (Tax Alert 2021-0624)
— Mar 25: Ontario budget 2021-22 discussed (Tax Alert 2021-0621)
— Mar 25: Luxembourg updates Mutual Agreement Procedure (Tax Alert 2021-0620)
— Mar 24: EU adopts tax transparency rules for digital platforms (DAC7) (Tax Alert 2021-0614)
— Mar 23: Argentina enacts tax incentives and voluntary disclosure program to promote construction and access to housing (Tax Alert 2021-0612)
— Mar 23: Costa Rica's Ministry of Foreign Trade and Ministry of Finance issue regulations for registering for the free trade zone regime and as a Customs Public Service Assistant (Tax Alert 2021-0611)
— Mar 23: Greece’s Tax Authority issues guidance on COVID-19 and Transfer Pricing (Tax Alert 2021-0609)
— Mar 23: Irish Department of Finance releases public consultation on application of the Authorised OECD Approach in Ireland (Tax Alert 2021-0604)
— Mar 22: Curaçao publishes guidelines on territorial tax system (Tax Alert 2021-0601)
— Mar 19: Cyprus approves legislation to implement Mandatory Disclosure Rules (Tax Alert 2021-0594)
— Mar 19: Commission of Experts on Tax Expenditures/Benefits issues recommendations for the Colombian tax system (Tax Alert 2021-0593)
— Mar 25: House Appropriations hearing on the maternal health crisis (Tax Alert 2021-0623)
— Mar 24: HELP Committee hearing on prescription drug prices (Tax Alert 2021-0616)
— Mar 22: American Rescue Plan Act affects ACA reporting by expanding COBRA coverage and premium tax credits (Tax Alert 2021-0605)
— Mar 19: HELP Committee hearing on the federal COVID-19 response (Tax Alert 2021-0591)
— Mar 24: New York State Governor, Senate and Assembly FY2021-22 revenue bills compared (Tax Alert 2021-0618)
— Mar 23: Delaware Division of Revenue issues guidance on income tax obligations for wages earned by remote workers during the COVID-19 emergency (Tax Alert 2021-0613)
IRS Weekly Wrap-Up
| ||2021-17||Part III Administrative, Procedural, and Miscellaneous|
| ||2021-19||26 CFR 601.601: Rules and Regulations (Also Part I, §§ 25, 143)|
| ||2021-07||Section 1274.—Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property|
Because the matters covered herein are complicated, U.S. Tax This Week should not be regarded as offering a complete explanation and should not be used for making decisions. Any decision concerning matters covered herein should be reviewed with a qualified tax advisor.