The US Senate has approved the Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) budget reconciliation bill (S. 2). There are no tax provisions in the bill. The House is expected to take up the bill next week.

Treasury Secretary Scott Bessent went to Capitol Hill this week and testified before the Senate Finance Committee and House Ways & Means Committee regarding the Administration's proposed FY 2027 budget.

During the Finance Committee hearing on 3 June, Committee Chairman Mike Crapo (R-ID) said that the Senate Finance Committee was engaged in bipartisan discussions on the taxation of digital assets. The chairman said he considers continued inaction on the issue a risk for taxpayer compliance and US competitiveness and asked whether Treasury supports congressional efforts to develop comprehensive digital-asset taxation rules.

Secretary Bessent said that since President Trump issued his executive order titled Strengthening American Leadership in Digital Financial Technology in January 2025, the government "has been working tirelessly to implement the action on digital assets." The Secretary confirmed that he supported congressional efforts to develop a crypto framework that would provide "tax certainty" for digital assets.

The Ways & Means Committee hearing on 4 June included exchanges regarding global tax issues, including the agreement on a side-by-side system to exempt US companies from most global minimum tax requirements, Digital Services Taxes (DSTs) and promises to act if US companies are disadvantaged in relation to both issues.

Asked how other nations are implementing the side-by-side agreement, Secretary Bessent said there is ongoing cooperation with the OECD on the issue. The Secretary also told the committee that Treasury is pushing back against DSTs, and the US raises the issue in every negotiation with Canada.

The House Ways & Means Committee has scheduled a hearing on "Digital Asset Taxation" for 9 June. An advisory said the hearing is to discuss legislation relating to the taxation of digital assets, creating an expectation that specific draft bills would be examined.

Topics that could be addressed include mining and staking, charitable deductions, tax anti-abuse rules and reporting rules.

The Office of the U.S. Trade Representative (USTR) on 2 June released a report in connection with its Section 301 investigations into whether 60 US trading partners fail to adequately prevent or ban imports of goods made with forced labor. The USTR initiated investigations into the 60 economies on 12 March 2026.

The USTR proposed additional ad valorem duties of 10% to 12.5% on substantially all products from these economies, with certain exemptions. The USTR is soliciting public input regarding the proposed actions with written comments due 6 July; public hearings will begin on 7 July. A Global Tax Alert has details.

The OECD on 1 June released a public consultation draft titled "Revisions to Chapter VII of the OECD Transfer Pricing Guidelines - Special considerations for intra-group services." The discussion draft proposes substantial revisions to Chapter VII. According to the draft, "The primary objective of this work is to ensure alignment between the guidance on intra-group services and the foundational principles in Chapters I, II and III of the OECD Transfer Pricing Guidelines." The draft states the revisions are not intended to change the general principles that support the transfer pricing analysis of intra-group services, however.

The consultation draft is the work product of Working Party No. 6 of the Committee on Fiscal Affairs. Public comments on the draft must be submitted by 22 July. A public consultation on the discussion draft will take place in November 2026. A Global Tax Alert provides details.