April 18, 2021
U.S. Tax This Week for April 16
Ernst & Young's U.S. Tax This Week newsletter for the week ending April 16 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
IRS releases FAQs on ICAP program for US multinational enterprises
The IRS recently released new frequently asked questions (FAQs) and answers on the International Compliance Assurance Program (ICAP). The FAQs are directed at US multinational enterprises (US MNEs) that may be considering the program. EY Tax Alert 2021-0766 has details.
OECD releases consultation document with proposed changes to Commentaries to OECD Model Tax Convention on Article 9 (Associated Enterprises) and related articles
On March 29, the Committee of Fiscal Affairs of the Organisation for Economic Co-operation and Development (OECD) released as a public consultation document a discussion draft proposing changes to the Commentaries on the OECD Model Tax Convention (OECD Model). The document contains the recommendations on the interpretation and application of Article 9 (Associated Enterprises) and other related articles of the OECD Model, made by Working Party 1 (the subgroup of the OECD Committee on Fiscal Affairs (CFA) responsible for work on the Model) in consultation with Working Party 6 (the subgroup of the OECD CFA responsible for work on the taxation of multinational enterprises, including transfer pricing matters) and the Forum on Tax Administration’s Mutual Agreement Procedure (MAP) Forum. EY Tax Alert 2021-0753 has details.
EY Guides, Surveys, and Reports
EY's Worldwide VAT, GST and Sales Tax Guide 2021
Outlining value-added tax (VAT) systems in 137 jurisdictions, the 2021 edition of EY's annual reference book, Worldwide VAT, GST and Sales Tax Guide, is now available. All of the content is current as of January 1, 2021. New chapters for 2021 include: Côte d'Ivoire (Ivory Coast), Jamaica and Lesotho. The UK chapter also discusses the Trade and Cooperation Agreement (TCA) between the UK and EU, which came into effect on January 1, 2021, and the impact of Brexit on the VAT system of Great Britain and Northern Ireland.
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.
How to prepare for 2021’s reframed immigration, travel and working world (April 22)
During this EY Webcast, Ernst & Young professionals will look at how challenges moving people post-Brexit, mid-pandemic and mid-vaccine distribution have evolved, with 53% of employees in EMEIA supporting the decision to have employers mandate vaccinations. *Note – there is no CPE offered for this Webcast.
Potential US international tax reform (April 22)
With the new Biden Administration and Democratic control of Congress, there has been ongoing activity with respect to both US corporate income tax proposals and global proposals under the Organisation for Economic Co-operation and Development’s (OECD’s) BEPS 2.0 project. These proposals, if enacted, may be quite sweeping, with potentially material impact on the international taxation of US corporations. During this Thought Center Webcast, Ernst & Young professionals will discuss these developments.
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.
Upcoming changes to IRC Section 174: Amortization of research and experimental expenditures (April 27)
During this Thought Center Webcast, Ernst & Young professionals will discuss (i) the upcoming changes to IRC Section 174, (ii) the potential tax and operational impact of these changes, (iii) immediate and long-term potential planning, and (iv) proposed legislation.
BorderCrossings . . . with EY transfer pricing and tax professionals (April 29)
During this Thought Center Webcast, Ernst & Young professionals will have an in-depth discussion of BEPS 2.0 for 2021.
Work from anywhere: How do we re-envisage our future after the unimaginable? (May 19)
During this EY Webcast, Ernst & Young professionals will highlight the journey of four organizations during this complicated year. Learn how they each reimagined how and where work gets done. Each panelist will share a unique point of view on the success and challenges of the past year, including a look ahead.
Recent Tax Alerts
— Apr 12: Split-dollar life insurance benefitting S corporation's sole shareholder and employee isn't a corporate distribution to a shareholder, but rather a taxable fringe benefit, holds Tax Court (Tax Alert 2021-0750)
Internal Revenue Service
— Apr 14: IRS releases FAQs on ICAP program for US multinational enterprises (Tax Alert 2021-0766)
— Apr 13: IRS clarifies application of individuals' 2020 overpayments to 2021 estimated taxes (Tax Alert 2021-0759)
— Apr 13: IRS amplifies COVID-19 relief for certain employers' failure to timely deposit employment taxes with the IRS (Tax Alert 2021-0758)
— Apr 12: EY publication highlights 2021 Q1 tax policy developments across the Americas (Tax Alert 2021-0752)
— Apr 12: IRS proposes rules for certain foreign persons and partnerships wanting to invest in qualified opportunity funds (Tax Alert 2021-0751)
— Apr 09: IRS clarifies which expenses qualify for temporary 100% deduction for food or beverages 'provided by a restaurant' (Tax Alert 2021-0739)
— Apr 09: IRS TE/GE adds eight compliance initiatives aimed at exempt organizations, employee plans and exempt bonds (Tax Alert 2021-0731)
— Apr 15: China clarifies procedures for processing payments for transfer pricing adjustments (Tax Alert 2021-0768)
— Apr 15: Spanish Ministry of Taxation approves Mandatory Disclosure Regime reporting forms and deadlines (Tax Alert 2021-0767)
— Apr 14: Argentine entities with controlling ultimate parent entities in the United States should determine whether they have to file the local CbC report (Tax Alert 2021-0765)
— Apr 15: Ireland’s Department of Finance to host virtual seminar on International Tax (Tax Alert 2021-0763)
— Apr 15: Greek Tax Authority issues guidance on tax treatment of stock option plans (Tax Alert 2021-0762)
— Apr 15: European Commission proposes VAT exemption for vital goods and services distributed by the EU in times of crisis (Tax Alert 2021-0761)
— Apr 13: Kenya’s Tax Appeal Tribunal provides guidance on taxation of professional and managements fees under Double Tax Treaty Agreement (Tax Alert 2021-0755)
— Apr 13: Ghana enacts various tax amendments introduced in 2021 Budget (Tax Alert 2021-0754)
— Apr 13: OECD releases consultation document with proposed changes to Commentaries to OECD Model Tax Convention on Article 9 (Associated Enterprises) and related articles (Tax Alert 2021-0753)
— Apr 12: Argentine Government modifies bill it plans to send to Congress that would raise corporate income tax rates (Tax Alert 2021-0749)
— Apr 13: Hong Kong proposes to allow a tax deduction for foreign taxes charged on gross income basis (Tax Alert 2021-0748)
— Apr 09: Government reaches agreement with representatives of labor and business sectors on outsourcing services in Mexico (Tax Alert 2021-0740)
— Apr 09: Manitoba budget 2021-22 discussed (Tax Alert 2021-0736)
— Apr 08: Costa Rica's tax administration publishes resolution on Advance Pricing Agreements (Tax Alert 2021-0733)
— Apr 09: Spanish Government publishes MDR Regulations (Tax Alert 2021-0730)
— Apr 14: What to expect in Washington (April 14) (Tax Alert 2021-0760)
— Apr 09: President Biden releases $1.5T 2022 budget request (Tax Alert 2021-0741)
— Apr 09: Biden tax proposals take shape amid uncertain outlook in Congress (Tax Alert 2021-0737)
— Apr 13: Ohio employers granted waiver of penalty and interest for all four quarters of 2020 SUI returns and payments; 2021 SUI tax rates increased due to trust fund insufficiency (Tax Alert 2021-0757)
— Apr 13: Ohio Board of Tax Appeals upholds Commercial Activity Tax assessment sourcing portion of NASCAR broadcasting revenue to Ohio (Tax Alert 2021-0756)
— Apr 12: Puerto Rico's Department of State extends due date to file the 2020 corporate annual reports, pay limited liability company annual fee and request extensions (Tax Alert 2021-0747)
— Apr 09: New York bill would provide relief from state and local income tax for certain teleworkers in connection with COVID-19 (Tax Alert 2021-0742)
IRS Weekly Wrap-Up
| ||REG-121095-19||Requirements for Certain Foreign Persons and Certain Foreign- Owned Partnerships Investing in Qualified Opportunity Funds and Flexibility for Working Capital Safe Harbor Plans|
| ||2021-08||Section 1274.—Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property|
| ||2021-24||Relief from Penalty for Failure to Deposit Employment Taxes|
| ||2021-27||Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates|
| ||2021-28||Public Recommendations Invited on Items to be Included on the 2021-2022 Priority Guidance Plan|
Internal Revenue Bulletin
| ||2021-15||Internal Revenue Bulletin of April 12, 2021|
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.