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23 April 2023

U.S. International Tax This Week for April 21

Ernst & Young's U.S. International Tax This Week newsletter for the week ending April 21 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.

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Spotlight

House Speaker Kevin McCarthy (R-CA) gave a speech in New York on 17 April, declaring that "a no-strings-attached debt limit increase cannot pass [Congress]." The Speaker said any debt deal would have to be accompanied by congressional Republican proposals, such as returning the federal government to 2022 spending levels, clawing back unspent COVID-19 funds, passing the Lower Energy Costs Act (H.R. 1) and enhancing work requirements for federal programs.

On 19 April, House Republicans delivered their initial debt-limit proposal. They introduced the Limit, Save, Grow Act of 2023, a 320-page bill that would reduce discretionary federal spending to FY 2022 levels and either raise the debt limit by $1.5 trillion or extend the ceiling through 31 March 2024, whichever occurs first. The Republican bill would restore prior law for a number of energy-related Inflation Reduction Act (IRA) provisions and repeal other clean energy measures. It would also rescind amounts provided to the IRS in the IRA. Republicans claimed the bill would trim the deficit by $4.5 trillion over 10 years by capping discretionary spending at 2022 levels.

President Biden and Democratic congressional leaders are calling for a clean debt-limit bill and would be unlikely to support rolling back provisions of the IRA. The House Financial Services Committee on 18 April held a hearing on oversight of the Securities and Exchange Commission (SEC) with the SEC Chairman testifying across a number of areas. Among the topics covered were the SEC's asserted authority over most cryptocurrency products and the SEC's enforcement actions against crypto firms. The SEC Chairman defended the SEC's position, arguing that, "Nothing about the crypto markets is incompatible with the securities laws. [T]he vast majority of crypto tokens are securities."

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Upcoming Webcasts

Servitization: How to unlock the future of XaaS business models (April 27)
During this EY Webcast, Ernst & Young professionals will discuss service-led business models. Servitization represents a paradigm shift in the commercial and economic landscape — from the traditional buy or sell business model to a long-term lease, service, or subscription-based model. The potential impact of these new models crosses sectors and geography.

BorderCrossings... With EY transfer pricing and tax professionals (April 27)
During this EY Webcast, Ernst & Young professionals will talk about the results APMA reported in its 2022 APA Annual Statutory Report and discuss the challenges facing APMA and what the future holds.

EY Tax.Tech™ Ecosystem series: Preparing for OECD Pillar Two global minimum tax calculations, provision and compliance requirements (May 4)
During this EY Webcast, Ernst & Young professionals will discuss data requirements, processing steps and timeline necessary to meet upcoming BEPS 2.0 Pillar Two requirements. They will also highlight tools included on the Orbitax International Tax Platform that can help companies address issues related to the global minimum tax. These tools leverage Thomson Reuters integration to improve and automate your tax compliance preparation and review process. Finally, they’ll review the latest use cases and preview what’s ahead.

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Recent Tax Alerts

Africa

Canada & Latin America

Europe

Multinational

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IRS Weekly Wrap-Up

Internal Revenue Bulletin

 2023-16Internal Revenue Bulletin of April 17, 2023
 2023-17Internal Revenue Bulletin of April 24, 2023

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Additional Resources

EY’s Tax News Update, 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’s Tax and Law Guides. — Tax and Law Guides | EY - Global 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.

Document ID: 2023-0750

 

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