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February 16, 2023

U.S. Tax This Week for February 17

Ernst & Young's U.S. Tax This Week newsletter for the week ending February 17 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

New pilot phase for CAP program participants will allow IRS review

On February 13, 2023, the IRS announced (IR-2023-25) a new pilot phase of its Compliance Assurance Process (CAP) program called Bridge Plus, which will be available to certain taxpayers who are considered low risk and approved by IRS Large Business & International (LB&I). In response to taxpayers' concerns, Bridge Plus allows the IRS to review eligible taxpayers' returns for compliance before they file. EY Tax Alert 2023-0301 has details.

ECOFIN adopts revised list of non-cooperative jurisdictions for tax purposes

On 14 February 2023, the Council of the European Union (the Council) held an Economic and Financial Affairs Council (ECOFIN) meeting where Finance Ministers approved the Council Conclusions on the revised EU List. Regarding Annex I, the Council decided to add four jurisdictions (British Virgin Islands, Costa Rica, Marshall Islands, and Russia). With respect to Annex II and the state of play of pending commitments, the Council removed Barbados, Jamaica, North Macedonia, and Uruguay and added Albania, Aruba, and Curaçao. EY Tax Alert 2023-0281 has details.

EY Guides, Surveys, and Reports

Asean Mobility Spotlight (January 2023)
In this edition of the Asean Mobility Spotlight, we address the key considerations in tax, immigration and social security compliance for business travelers (BTs), who are assigned to ASEAN jurisdictions for short-term business meetings, etc., and not on formal assignment.

Upcoming Webcasts

Corporate alternative minimum tax: what the latest interim guidance could mean for companies (February 28)
During this EY Webcast, Ernst & Young professionals will discuss the technical aspects, implications and uncertainties of Notice 2023-7.

Domestic tax quarterly webcast series: A focus on state tax matters (March 1)
During this EY Webcast, Ernst & Young professionals will provide information on major tax law changes in the 50 states and District of Columbia, as well as current state and local tax topics of interest.

Are you Pillar Two-ready? | Banking and Capital Markets: Current industry insights (March 8)
During this EY Webcast, Ernst & Young professionals will examine the latest guidance from the Organisation for Economic Co-operation and Development (OECD) on the BEPS 2.0 project as it relates to the banking and capital markets industry.

Pillar Two administrative guidance and safe harbors: implications for US multinationals (March 9)
Recent administrative guidance from the Organisation for Economic Co-operation and Development (OECD) on the Global Anti-Base Erosion (GloBE) rules under Pillar Two addresses many critical issues for US multinationals but also raises many (unanswered) technical questions. The OECD’s transitional safe harbor rules, released at the end of 2022, could help relieve compliance burdens for US companies. During this EY Webcast, Ernst & Young professionals will provide a detailed discussion of these developments and practical approaches to help manage the reporting and tax-rate implications.

Recent Tax Alerts


— Feb 10: Tax Court approves agreement by Eaton Corporation and the IRS resolving APA cancellation case (Tax Alert 2023-0255)

Internal Revenue Service

— Feb 10: IRS rules that REIT's right to receive state brownfield tax credits is qualifying asset resulting in qualifying income (Tax Alert 2023-0265)

— Feb 10: One-time cash grant from dissolving tax-exempt hospital to public charity constitutes an 'unusual grant' (Tax Alert 2023-0264)


— Feb 15: Turkey reduces withholding tax to 0% on share-buy-back transactions (Tax Alert 2023-0286)

— Feb 15: Global Tax Policy and Controversy Watch | February 2023 edition (Tax Alert 2023-0284)

— Feb 15: Costa Rica is added to EU list of non-cooperative jurisdictions (Annex I) for the first time (Tax Alert 2023-0283)

— Feb 15: ECOFIN adopts revised list of non-cooperative jurisdictions for tax purposes (Tax Alert 2023-0281)

— Feb 14: Uruguayan Tax Authority publishes adjustments in interest taxation under Double Tax Treaty between Chile and Uruguay (Tax Alert 2023-0280)

— Feb 14: Qatar enacts amendments to Income Tax Law (Tax Alert 2023-0278)

— Feb 14: Botswana's Government presents 2023 Budget to Parliament (Tax Alert 2023-0277)

— Feb 13: Kenya High Court dismisses petitions challenging imposition of VAT on exported services (Tax Alert 2023-0271)

— Feb 13: Germany implements new UBO reporting obligations for foreign entities with direct or indirect ownership in German real estate (Tax Alert 2023-0270)

— Feb 13: Uganda mandates all companies to file beneficial owner's information (Tax Alert 2023-0269)

— Feb 10: Japan submits draft legislation to implement IIR to align with OECD BEPS 2.0 Pillar Two (Tax Alert 2023-0263)

— Feb 10: OECD/G20 Inclusive Framework releases Administrative Guidance under Pillar Two GloBE Rules: Detailed Review (Tax Alert 2023-0256)

— Feb 10: Kenya proposes amendments to Excise Duty Regulations (Tax Alert 2023-0253)


— Feb 15: Senate Finance holds Werfel IRS Commissioner hearing (Tax Alert 2023-0287)

— Feb 15: What to expect in Washington (February 15) (Tax Alert 2023-0282)


— Feb 14: Puerto Rico's Treasury Department issues guidance on making estimated tax payments for companies that elected to be taxed under the new regime provided under Act 52-2022 (Tax Alert 2023-0279)

— Feb 13: Oregon 2023 Workers' Benefit Fund assessment is unchanged from 2022 (Tax Alert 2023-0272)

IRS Weekly Wrap-Up

Revenue Rulings

 2023-04Section 6621.— Determination of Rate of Interest
 2023-05Section 1274.— Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property


 2023-18Initial Guidance Establishing Qualifying Advanced Energy Project Credit Allocation Program Under Section 48C(e)
 2023-17Initial Guidance Establishing Program to Allocate Environmental Justice Solar and Wind Capacity Limitation Under Section 48(e)

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.