May 15, 2022
2022-0763 U.S. International Tax This Week for May 13 Ernst & Young's U.S. International Tax This Week newsletter for the week ending May 13 is now available. Prepared by Ernst & Young's International Tax Services group, this weekly update summarizes important news, cases, and other developments in international taxation. —————————————————————————
Spotlight There was not much movement in terms of a budget reconciliation bill, with most of the attention centered around a House-Senate conference on so-called China competitiveness legislation. Senator Joe Manchin this week again said he would support a budget reconciliation bill, saying,: "My main thing is inflation, fighting inflation with tax reforms." Senator Manchin has continued to call for tax rate increases that are opposed by Senator Kyrsten Sinema. A Treasury official this week said the US is working on rules governing so-called "Killer B" cross-border triangular reorganizations. The Internal Revenue Service earlier released Notices 2016-73 and Notice 2014-32 on the topic. The official was quoted as saying the US is "actively working on putting those into regulations." The official further noted that the US is also working on regulations under IRC Section 367(d) dealing with the situation when intangible property is transferred from the US and then repatriated. The official noted that the present regulations do not address the issue "so the implication right now is that if you bring it back, you are still subject to the 367(d) regime." The future guidance, which is included in the 2021 - 2022 priority guidance plan, reportedly will be narrow in scope but broader than existing private letter rulings that address intangible property returning to the US. |
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Upcoming Webcasts Work reimagined: How to prepare for ‘renaissance and recommitment’ (May 17)
During this EY Webcast, Ernst & Young professionals will explore the results of the newly released EY 2022 Work Reimagined Survey, which included more than 17,000 employees and 1,500 employers across 22 countries. Private equity and private capital quarterly tax webcast (May 17)
During this EY Webcast, Ernst & Young professionals will discuss recent global private equity (PE) industry trends and the outlook for US and international legislative and regulatory changes relevant to PE and alternative funds, transactions and portfolio companies. How to realize the full potential of your tax and finance function (May 23)
During this EY Webcast, Ernst & Young professionals will discuss recent tax industry trends and the outlook for changes relevant to financial services tax companies. BorderCrossings (May 25)
During this EY Webcast, Ernst & Young professionals will discuss issues arising from transactions and global economic developments impacting domestic transfer pricing (TP). Panelists will also review the latest state tax administrative approaches to resolving TP disputes, such as state advanced pricing agreement initiatives, as well as recent case law and legislative proposals – highlighting controversy considerations for multicorporate businesses. The indirect tax technology journey: Now. Next. Beyond. (June 9)
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. This webcast will focus on leading practices for global indirect tax technology selection and implementation. —————————————————————————
Recent Tax Alerts Africa — May 06: South Africa’s Minister of Finance proposes further disclosure of wealth (Tax Alert 2022-0729) Canada & Latin America — May 11: Canada's proposed hybrid mismatch arrangement rules discussed (Tax Alert 2022-0751) Europe — May 12: PE Watch | Latest developments and trends, May 2022 (Tax Alert 2022-0757) — May 12: Germany’s Ministry for the Environment circulates proposal on implementation of Extended Producer Responsibility regime for single-use plastic items (Tax Alert 2022-0755) — May 12: European Commission proposes Directive to tackle debt-equity bias in taxation (Tax Alert 2022-0753) — May 10: UK delays import checks on EU products (Tax Alert 2022-0745) — May 09: EU imposes sanctions in response to war in Ukraine (Tax Alert 2022-0739) —————————————————————————
Recent Newsletters Washington Dispatch Highlights of this edition include: Legislation - Congress returns amid speculation over limited budget reconciliation
- Senate proposal would disallow foreign tax credits, other US tax benefits connected with operations in Russia or Belarus
IRS news - IRS issues annual APA report for 2021
- New Schedules K-2 and K-3 FAQs released
OECD developments - OECD holds public consultation meeting on Implementation Framework for Pillar Two GloBE Rules
- OECD releases public consultation document on draft rules regarding scope under Amount A for BEPS Pillar One
- OECD releases public consultation document on Extractives Exclusion under Amount A for Pillar One
- OECD releases ninth batch of Stage 2 peer review reports on dispute resolution
- OECD releases fourth annual peer review report on BEPS Action 6 relating to prevention of treaty abuse
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IRS Weekly Wrap-Up Internal Revenue Bulletin | | 2022-20 | Internal Revenue Bulletin of May 16, 2022 |
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Additional Resources Ernst & Young Client Portal, the leading source for news, analysis, and reference materials for corporate tax professionals, has a variety of content of interest to international tax practitioners, including: — EY/Passport. EY/Passport is your guide to planning ventures in the global economy, offering a wealth of tax and business knowledge on more than 150 countries. Because the matters covered herein are complicated, U.S. International 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. | 
