February 27, 2022
U.S. Tax This Week for February 25
Ernst & Young's U.S. Tax This Week newsletter for the week ending February 25 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
OECD releases Pillar One public consultation document on draft rules for tax base determinations
On 18 February 2022, the Secretariat of the Organisation for Economic Co-operation and Development (OECD) released a public consultation document with draft rules for tax base determinations under Amount A for Pillar One of the OECD/G20 project on Addressing the Tax Challenges Arising from the Digitalisation of the Economy (the so-called BEPS 2.0 project). EY Tax Alert 2022-0307 has details.
OECD Tax Talk provides insight on BEPS 2.0 The OECD February 21 provided insight into the schedule of releases and consultations in relation to the project on Addressing the Tax Challenges Arising from the Digitalization of the Economy (the so-called BEPS 2.0 project), including Pillar One and Pillar Two consultations, and officials generally said they have heard frustrations about the project and are working to address them. EY Tax Alert 2022-0306 has details.
EY Guides, Surveys, and Reports
Global Tax | Recent developments and trends in asset management
This latest EY publication is a summary of key issues and trends arising from domestic tax reforms and international developments related to base erosion and profit shifting (BEPS) initiatives relevant to alternative fund managers in managing their fund and investment platforms. The publication summarizes jurisdiction-specific key issues, trends, and general developments.
The outlook for global tax policy and controversy in 2022 (March 1)
During this EY Webcast, Ernst & Young professionals will discuss the findings reported in the EY 2022 Tax Policy & Controversy Outlook, focusing on significant tax law and administration trends and highlighting leading practices for organizations as they navigate tax developments around the world in the year ahead.
The indirect tax technology journey - Now. Next. Beyond. (March 2)
During this EY Webcast, Ernst & Young professionals will share insights into how market-leading organizations are using technology to adapt to new legislation and market trends, and to effectively transform tax operations.
Tax in the time of COVID-19: Update on legislative, economic, regulatory and IRS developments (March 4)
During this EY Webcast, Ernst & Young professionals will discuss how businesses can navigate the tax policy environment and continue to effectively operate their tax function in this time of crisis and change. Panelists will provide updates on: (i) the US economy and tax policy; (ii) breaking developments; and (iii) what’s happening at the IRS.
Transparency in the sharing economy: What to know about DAC7 and beyond (March 24)
During this EY Webcast, Ernst & Young professionals will discuss the global adoption of tax reporting rules for digital platforms, including OECD’s Model Rules, EU’s tax automatic exchange of information directive known as DAC7 and the UK’s hybrid implementation.
Recent Tax Alerts
Internal Revenue Service
— Feb 23: IRS publishes proposes regulations addressing required minimum distributions from a wide variety of plans (Tax Alert 2022-0314)
— Feb 24: Uruguay's tax authority updates list of low- or no-taxation countries, jurisdictions and special regimes (Tax Alert 2022-0322)
— Feb 24: Netherlands publishes changed view on international allocation of severance payments (Tax Alert 2022-0320)
— Feb 23: Northwest Territories budget 2022-23 discussed (Tax Alert 2022-0316)
— Feb 23: Italy issues final guidance on hybrid mismatches (Tax Alert 2022-0313)
— Feb 23: British Columbia budget 2022-23 discussed (Tax Alert 2022-0312)
— Feb 22: Canada's proposed rate reduction for zero-emission technology manufacturers discussed (Tax Alert 2022-0310)
— Feb 22: Highlights of Nigeria's Finance Act 2021 discusssed (Tax Alert 2022-0309)
— Feb 21: OECD releases Pillar One public consultation document on draft rules for tax base determinations (Tax Alert 2022-0307)
— Feb 21: OECD Tax Talk provides insight on BEPS 2.0 (Tax Alert 2022-0306)
— Feb 21: Singapore announces new border control measures to go into effect on February 22 (Tax Alert 2022-0305)
— Feb 18: Canadian immigration in 2022 discussed (Tax Alert 2022-0301)
— Feb 18: United Kingdom closes Tier 1 Investor Route to new applicants with immediate effect (Tax Alert 2022-0300)
— Feb 18: Education and Labor Subcommittee hearing on pathways to affordable, universal health coverage (Tax Alert 2022-0298)
— Feb 24: Iowa Department of Revenue issues guidance on composite return requirements for 2022 as legislature considers elective pass-through entity tax (Tax Alert 2022-0321)
— Feb 23: Nebraska delays due date of 2021 fourth-quarter SUI return and tax payment; 2022 SUI wage base unchanged and tax rates slightly lower (Tax Alert 2022-0319)
— Feb 23: Ohio updates Internal Revenue Code conformity date (Tax Alert 2022-0317)
— Feb 22: Washington law delays implementation of long-term care insurance until July 1, 2023 (Tax Alert 2022-0311)
— Feb 18: West Virginia 2022 SUI wage base is decreased, SUI tax rates remain unchanged from 2021 (Tax Alert 2022-0299)
State and Local Tax Weekly
Highlights of this edition include:
— California governor signs bill restoring NOLs and R&D credits for 2022, modifies elective pass-through entity tax. On Feb. 9, 2022, California Governor Newsom signed into law Cal. Laws 2022, ch. 3 (2022 CA SB 113) (SB 113), which includes business tax law changes that were part of the governor's 2022-23 budget proposal.
— Governors' budget proposals from throughout the US include tax relief measures and other tax changes. With 2022 underway, governors across the country have delivered their state-of-the-state addresses and presented proposed budgets for the upcoming fiscal year (collectively, "proposals").
— Income/Franchise, Sales & Use, Business Incentives, Payroll & Employment Tax, Miscellaneous Tax, Unclaimed Property, Value Added Tax, Upcoming Webcasts
IRS Weekly Wrap-Up
| ||T.D. 9960||Guidance on Passive Foreign Investment Companies; Correction|
| ||T.D. 9960||Guidance Under Section 958 on Determining Stock Ownership; Correction|
| ||2022-05||Section 6621. - Determination of Rate of Interest|
| ||2022-09||Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates|
Internal Revenue Bulletin
| ||2022-09||Internal Revenue Bulletin of February 28, 2022|
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.