Two weeks to 24 November 2023
Welcome to our latest update on recent developments in international and treasury tax of interest to multinationals operating in the UK.
UK
Pillar Two
- Autumn Statement - UTPR to be introduced 2025
It was announced in the Autumn Statement that the UK will introduce the Undertaxed Profits Rule (UTPR) for accounting periods beginning on or after 31 December 2024. Draft legislation relating to this was initially published on 18 July and amended on 27 September, see here.
The government also:- reiterated that the IIR (Income Inclusion Rule) and QDMTT (Qualifying Domestic Minimum Top-up Tax), introduced in Finance (No2) Act 2023, will have effect in respect of accounting periods beginning on or after 31 December 2023; and
- announced that a number of technical amendments to the enacted IIR and QDMTT rules would be included in the next Finance Bill. The technical amendments it intends to address are set out in this Tax Information and Impact Note. Most of these matters are already addressed in the draft legislation referred to above, but not all. In terms of new measures, most significantly, the government now intends to take securitisation vehicles outside the QDMTT.
Autumn Statement 2023
On 22 November, the Chancellor of the Exchequer Jeremy Hunt delivered his Autumn Statement alongside the latest economic forecast from the Office for Budget Responsibility (OBR).
- Visit our dedicated webpage for a summary of the key announcements, as well as views from our PwC specialists and economists on what the statement could mean for individuals and businesses.
- Watch our on demand webcast where we discussed what the announcements could mean for individuals, employers and businesses.
Case Law
- Unallowable Purpose and Information Notice - Parker Hannifin (GB) Ltd
The key principle that this decision reinforces is that information and documents that are requested by HMRC (whether informally, or formally) must be relevant to the actual thing that HMRC is enquiring into. The decision in this case is an important reminder that HMRC's use of their formal, legal, powers comes with taxpayer safeguards. HMRC is not entitled to conduct 'fishing expeditions'. It remains important to engage appropriately with HMRC during their enquiries, and that includes critically examining what information and documents HMRC may seek and whether they are 'reasonably required' for the purpose of the enquiry.
For more advice on information notices, please get in touch with your usual Tax Disputes Team contact. - Skatteforvaltningen v Solo Capital Partners LLP & Ors [2023] BTC 28
In Skatteforvaltningen (the Danish Customs and Tax Administration) v Solo Capital Partners LLP & Ors, the Supreme Court dismissed the appeal of Solo Capital Partners LLP & Ors (Solo) against the decision of the Court of Appeal. The case concerned the admissibility in the English courts of a claim for damages made by the Danish Customs and Tax Administration (SKAT). The claim related to refunds of Danish dividend withholding tax (WHT) reclaimed by Solo. SKAT alleged that Solo had acted fraudulently. The court held that SKAT’s claim was admissible in the English courts. You can read the decision here. - HMRC v Fisher & Anor - HMRC appeal dismissed in transfer of assets abroad case
This case concerned the application of the transfer of assets abroad (TOAA) rules, which impose a tax charge where a UK resident individual transfers assets to a person overseas so that instead of receiving and paying tax on income arising from the assets (such as dividends from those shares) the overseas company either retains the income or transfers it to the individual in the form of capital. The effect of the provisions, broadly, is that the income received by the overseas person is deemed to be the income of the individual who is then charged tax on it, whether or not he has actually received any of that income within the jurisdiction. In this case HMRC’s appeal was dismissed because the taxpayers were found not to be the transferors of the business that was sold, either singly or collectively, and they were therefore not within the charging provision in section 739 ICTA 1988. You can read the decision here.
CSRD requirements finally fall into place: Five critical ‘no regrets’ steps to get started
The implementation of the Corporate Sustainability Reporting Directive (CSRD) continues to gather pace despite reporting standard delays, threshold changes and, most notably, a motion voted down by the European Parliament that would have rejected the first set of reporting standards. For those preparing to report against the framework, this provides welcome confirmation that the reporting standards will formally be in place by the 1 January 2024 deadline. Although the sector specific and third country undertaking reporting standards are delayed, there is no delay to the implementation of CSRD itself. This means businesses impacted by CSRD must start preparing urgently if they haven’t already. Read more in our article.
Talking Tax November 2023
Welcome to this month's Talking Tax, bringing you a range of views and insights from specialists across our business. You can subscribe to receive future editions straight to their inbox.
EU
CJEU rules that the benefit of Art. 8 (2) of the Tax Merger Directive cannot be conditional upon additional requirements not laid down in the Directive itself
On 16 November 2023, the Court of Justice of the European Union (CJEU) ruled that the application of Article 8(2) of the Tax Merger Directive could not depend on requirements that do not stem from the Directive (GE Infrastructure Hungary Holding, C-318/22). Article 8(2) of the Directive stipulates that in the case of a partial division that falls within the scope of the Directive, the allotment to a shareholder of the transferring company of securities representing the capital of the receiving company shall not, of itself, give rise to any taxation of the income, profits or capital gains of that shareholder. Read more in our PwC EU Direct Tax Group newsalert.
Minister for Finance notes Opinion of Advocate General in Apple State aid case
Ireland’s Minister for Finance, Michael McGrath TD, recently issued a short statement noting the Opinion of the Advocate General Pitruzella that the judgment of the EU General Court on ‘tax rulings’ adopted by Ireland be set aside in the Apple State aid case and the case be referred back to the General Court for a new decision on the merits.
Commission fines Rabobank €26.6 million over Euro-denominated bonds trading cartel
The European Commission has fined Rabobank EUR 26.6 million for participating in a cartel concerning the trading of certain Euro-denominated bonds, together with Deutsche Bank. Deutsche Bank was not fined as it revealed the cartel to the Commission under the leniency programme. Read more in this press release.
CFE Tax Advisers Europe
EU Tax Policy News Top 5
The latest round-up of EU Tax Policy news from the Confédération Fiscale Européenne (CFE). The latest edition from 20 November includes: 1) Momentum Builds Behind Africa Group Initiative for UN Tax Convention; 2) EU Commission Commences Infringement Proceedings Against Belgium for Treatment of Non-Resident Taxpayers; 3) 48 Countries to Implement OECD Tax Transparency Standards for Crypto-Assets by 2027; 4) Abuse of Law Conference in Brussels: 21 – 22 November 2023; and 5) Next Meeting of the FISC European Parliament Subcommittee. Visit their latest news page here.
OECD
Pillars One and Two
Pillar Two Safe Harbors: The CbCR journey
In this Cross-border Tax Talks episode from 15 November, Doug McHoney (PwC’s International Tax Services Global Leader) is joined by David Ernick, a Principal with PwC’s Washington National Tax Services Transfer Pricing Practice and former Associate International Tax Counsel at the US Treasury Department. They discuss Country-by-country reporting (CbCR) transitional safe harbour rules, including the safe harbour tests, exclusions to the rules, the difference between the safe harbour rules and the full GLoBE rules, as well as whether a CbCR is ‘qualifying’. Doug and David also discuss the history and implementation of public CBCR.
OECD invites public input on proposed changes to the Commentary on PE Article of the OECD Model Tax Convention
The OECD has launched a consultation for comments by 4 January, on proposed changes to the Commentary on Article 5 of the OECD Model Tax Convention and its application to extractible natural resources. Article 5 on Income and on Capital deals with the definition of permanent establishment.
Multinational enterprises continue reporting low-taxed profit, even in jurisdictions with high corporate tax rates, underlining need for global tax reform
Jurisdictions with high tax rates account for more than half of the low-taxed profits reported globally by multinational enterprises (MNEs), according to new OECD analysis. The new data and estimates on taxation of large MNE profits show how tax incentives and other concessions in jurisdictions with high statutory and average tax rates enable some firms to pay low effective tax rates (ETRs). The findings highlight how the introduction of a global minimum tax rate on the profits of large MNEs agreed by the OECD/G20 Inclusive Framework would create new opportunities for domestic resource mobilisation for high-tax and low-jurisdictions alike.
MLI
- Azerbaijan signs MLI
Azerbaijan has signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the MLI), at a signing ceremony held in Baku. Azerbaijan has become the 102nd jurisdiction to join the BEPS Convention, which now covers over 1,900 bilateral tax treaties. Read more in this OECD item.
The text of the BEPS Convention, the explanatory statement, background information, database, and positions of each signatory and parties are available at https://oe.cd/mli.
Kuwait joins the Inclusive Framework on BEPS
On 15 November 2023, the OECD announced that Kuwait joined the OECD/G20 Inclusive Framework on BEPS, an international collaboration with 145 member countries. As indicated in the announcement, Kuwait has agreed to participate in the Two-Pillar Solution to reform international taxation laws and ensure that multinational enterprises pay their fair share of taxes wherever they operate. Read more in this PwC alert.
Fiji joins the Global Forum on Transparency and Exchange of Information for Tax Purposes
In another step to boost international tax co-operation, Fiji has become the 169th member of the Global Forum. Fiji is committed to combatting offshore tax evasion through the implementation of the internationally agreed standards of exchange of information on request and automatic exchange of financial account information. Read more in this OECD item.
OECD Tax Certainty Day & latest MAP releases
Covering a record of 133 jurisdictions and practically all Mutual Agreement Procedure (MAP) cases worldwide, the latest MAP Statistics were released during the fifth OECD Tax Certainty Day, where tax officials and stakeholders discussed ways to further improve dispute prevention and resolution. The event also marked the announcement of this year’s MAP Awards and the release of a new report consolidating information on MAP for all Inclusive Framework members. Read more in this OECD item.
Other territories
International
Digital tax byte
The latest edition in our series of brief insights into the workings of the UK and supranational bodies reviewing the taxation of digitalisation of business. In this edition, from 22 November, we cover:
- the EU Parliament's ECON committee recommendations including deferral of the VAT in the Digital Age package;
- the Netherlands has postponed the penalty regime for its VAT e-commerce One Stop Shop;
- Norway has expanded the requirements for its VAT e-commerce regime;
- Brazil has progressed the gradual overhaul of its indirect tax system with the introduction of a two tier VAT regime;
- a statement by 48 countries of their intention to implement the OECD's crypto asset reporting framework (CARF);
- Italy's issuance of a Circular on taxation of crypto assets, including digital currency; and
- the UK has incorporated its guidance on digital platform operator reporting into the HMRC manual on information exchange.
Environmental, Social and Governance (ESG)
- PwC UK at COP 28
COP 28 UAE marks a halfway point, with seven years since the Paris Agreement was made, and seven left to make halving emissions a reality. It also marks the first ever Global Stocktake, presenting the chance to pause and reflect on, as business and society come together to bridge the gap between commitment and progress. As the United Nations Climate Change Conference convenes from 30 November to 12 December in Dubai, PwC will join the discussions to help advance meaningful action to address the climate and nature crises. Read more. If you missed our Global pre-COP webcast, you can watch the recording here. - Making sustainability reporting work for SMEs - Sage in collaboration with PwC
How can SMEs successfully navigate a complex and fast-evolving sustainability reporting landscape? New research from Sage, PwC UK and the International Chamber of Commerce explores the critical role SMEs play and how, together, we can make sustainability reporting work for SMEs. Read more. - Register now for our webcast - Tax transparency and sustainability reporting in 2023
In our recently published study, Tax transparency and sustainability reporting in 2023, we provide a comprehensive overview of the trends and challenges in tax transparency and sustainability reporting across 8 countries. In our upcoming webcast, on Thursday 30 November at 2pm, you can hear from our specialists as to how the study can help you benchmark your performance, identify best practices, and anticipate future developments in this rapidly evolving field. Register here.
Azerbaijan
Azerbaijan signs MLI
Azerbaijan has signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (‘MLI’) at a signing ceremony held in Baku. Azerbaijan has become the 102nd jurisdiction to join the BEPS Convention, which now covers over 1,900 bilateral tax treaties. Read more in this OECD item.
Belgium
See here for latest updates.
Draft law on public country-by-country reporting (PCbCR) in parliament
On 10 November 2023, the Belgian draft law was finally published. As per the draft text, companies that fall in scope of the PCbCR requirements are: (i) Belgian (parent) companies with a net turnover of more than EUR 750 million and which are subject to income taxation in multiple jurisdictions, as well as (ii) non-European parent companies with a net turnover of more than EUR 750 million that are economically active in Belgium through a subsidiary or branch and which are therefore subject to the Belgian tax system. Read more in this PwC news item.
Significant changes expected to the Belgian investment deduction regime
The Belgian Federal Government reached an agreement on the federal budget in the first half of October 2023. One of the important tax measures resulting from this budget agreement relates to specific changes to the Belgian investment deduction regime, a measure to support the Belgian investment climate. Read more on the expected changes to the regime in this PwC item.
Bermuda
Bermuda begins third public consultation & issues illustrative draft legislation for corporate income tax
The Government of Bermuda recently issued its third public consultation paper (PCP), including draft legislation, proposing a 15% corporate income tax (CIT) applicable to Bermuda tax-resident entities and permanent establishments that are part of multinational enterprise (MNE) groups with annual revenue of at least EUR750M. The tax would be effective beginning in 2025. Consistent with the first and second public consultations, one of the primary policy underpinnings associated with the CIT, as reflected in the third PCP, is alignment with the Global Anti-Base Erosion (GloBE) rules and qualification as a Covered Tax. However, Bermuda currently has no proposals to introduce the Income Inclusion Rule (IIR) or the Undertaxed Profits Rule (UTPR). Read more in this PwC Tax Insights.
Canada
2023 Federal Fall Economic Statement – Tax highlights
On 21 November 2023, the Deputy Prime Minister and federal Minister of Finance, Chrystia Freeland, presented the 2023 federal Fall Economic Statement. Generally, the economic statement focuses on the government’s housing action plan and addresses inflation and affordability. The economic statement does not change corporate or personal income tax rates, but it does give additional details of (and expand eligibility for) certain clean energy investment tax credits. It also provides an exception to the proposed measure denying the dividends received deduction for financial institutions in certain circumstances and makes the exemption for international shipping income in the Income Tax Act available to Canadian resident companies. This PwC Tax Insights discusses these and other tax initiatives proposed in the economic statement.
Cyprus
Pillar Two: Cyprus consents to QDMTT and Transitional UTPR Safe Harbours
The Cyprus Ministry of Finance (MoF) recently issued an announcement assuring that Cyprus consents to the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (Inclusive Framework) QDMTT (Qualified Domestic Minimum Top-up Tax) and Transitional UTPR (Undertaxed Profit Rule) Safe Harbours. Under the relevant EU Directive on Pillar Two (Council Directive (EU) 2022/2523) (Directive), a ‘qualifying international agreement of safe harbours’ is one which all EU Member States have consented to. As Cyprus is not a member of the Inclusive Framework, the Cyprus MoF issued the announcement to provide full assurance that Cyprus consents to the said safe harbours. Read more in this PwC alert.
Fiji
Fiji joins the Global Forum on Transparency and Exchange of Information for Tax Purposes
In another step to boost international tax co-operation, Fiji has become the 169th member of the Global Forum. Fiji is committed to combatting offshore tax evasion through the implementation of the internationally agreed standards of exchange of information on request and automatic exchange of financial account information. Read more in this OECD item.
Germany
Growth Opportunities Act
On 17 November 2023, the Bundestag approved the Growth Opportunities Act in the form recommended by its Finance Committee. The Act was presented to the Bundesrat on 24 November 2023.
- Germany proposes significant changes to interest deduction limitations
On 17 November, the German Bundestag (parliament) approved the Growth Opportunities Act. submitted by the government. The Bundestag's legislative action foresees a new law introducing an investment grant for certain investments aiming to achieve energy savings, and making various adjustments to national and international tax law provisions. This PwC Tax Insights focuses on the significant changes it proposes to the rules limiting the interest deduction. - No consent: Bundesrat fails to approve Growth Opportunities Act
The Bundesrat failed to approve the Growth Opportunities Act on 24 November 2023. The Federal States referred the project to the Mediation Committee of the Bundesrat and Bundestag for fundamental revision. In its referral the Federal States criticise the fact that the Bundestag's resolution only selectively adopted the numerous amendments proposed by the Bundesrat from its earlier detailed comments on the Act. There is also a "need for revision" due to the many last-minute additions during the Bundestag procedure. Read more in this PwC blog.
Future Financing Act
- Bundesrat approves Future Financing Act
On 24 November 2023, the Bundesrat (Federal Council) approved the Future Financing Act, which the Bundestag had passed just a few days earlier on 17 November 2023. The law can now be submitted to the Federal President for signature by the Federal Government and then published. Read more in this PwC blog. - Bundestag approves Future Financing Act
On 17 November 2023, the Bundestag passed the Federal Government's draft bill on financing future-proof investment. The so-called Future Financing Act is intended to provide for easier access to the capital market for start-ups, growth businesses and small and medium-sized enterprises (SMEs) and at the same time promote investment in renewable energy. Read more in this PwC blog.
Hong Kong
DIPN No. 63 issued on (i) qualifying company amalgamation and (ii) transfer or succession of specified assets without sale
The Inland Revenue Department recently issued a set of new Departmental Interpretation and Practice Notes No. 63 (DIPN 63), elaborating its views and practice as regards tax treatments in relation to 1) qualifying (court-free) amalgamations of companies; and 2) transfer or succession of specified assets without sale under certain circumstances, after the enactment of the Inland Revenue (Amendment) (Miscellaneous Provisions) Ordinance 2021. In addition, DIPN 63 sets out the information and documents that taxpayers may need to furnish when applying for an advance ruling on tax issues arising from a contemplated court-free amalgamation. Read more in this PwC news flash.
Advance ruling case - whether foreign-sourced dividend is received in Hong Kong
The Hong Kong Inland Revenue Department recently posted online Advance Ruling No. 72, clarifying the treatment of dividends remitted to a taxpayer’s offshore subsidiary.
Ireland
How can taxpayers prepare for joint audits?
Ireland’s Finance (No. 2) Bill 2023 transposes Article 12a of EU Directive 2021/514, also known as DAC7. For the first time, it provides a legal basis for Irish Revenue and other EU tax authorities to conduct joint audits in Ireland. Joint audits will be a game-changer for both tax authorities and taxpayers. Taxpayers must ensure they are ready for increased cross-border interventions, which will present various procedural complexities and require a review of how the organisation currently manages tax controversy. As a result, access to cross-border tax controversy experts is more important than ever. Read more in this PwC insight.
Minister for Finance notes Opinion of Advocate General in Apple State aid case
Ireland’s Minister for Finance, Michael McGrath TD, recently issued a short statement noting the Opinion of the Advocate General Pitruzella that the judgment of the EU General Court on ‘tax rulings’ adopted by Ireland be set aside in the Apple State aid case and the case be referred back to the General Court for a new decision on the merits.
Korea
Korean Tax Update
The latest edition includes: 1) Tax news; 2) Changes in tax laws; and 3) Rulings update.
Luxembourg
Luxembourg amends its draft law introducing global minimum tax
On 13 November 2023, the Luxembourg Government issued amendments to the draft law for the implementation of the Pillar Two minimum taxation rules. The amendments aim to implement certain points of the Administrative Guidance released by the OECD in February and July 2023. In the preliminary observations of the amended draft law, it is explicitly recognised that so far not all Administrative Guidance has been implemented in the amended draft law. However, it is mentioned that the Pillar Two rules are expected to be applied, conforming with such Administrative Guidance. This is in line with a recent endorsement of the Administrative Guidance by the EU Commission. Read more in this PwC news item.
Luxembourg minimum net wealth tax ruled partly unconstitutional
On 10 November 2023, the Luxembourg constitutional court ruled that the Luxembourg minimum net wealth tax (NWT) regime is partly unconstitutional as it leads to a discriminatory situation amongst certain taxpayers in a similar situation. Read more in this PwC news item.
The new Luxembourg government releases its coalition agreement
The new government, formed after the parliament election on 8 October 2023, revealed its programme for the next 5 years in a coalition agreement (the “coalition agreement”) signed on 16 November 2023.The coalition agreement confirms the willingness of the future government to maintain the stability of public spending and the preservation of Luxembourg’s AAA rating, being a sign of its financial solidity and guarantor of its economic attractiveness. Among the measures covered in the coalition agreement, there will be a reduction of personal income taxes as from 1 January 2024. Read more in this PwC news item.
Middle East
Kuwait joins the Inclusive Framework on BEPS
On 15 November 2023, the OECD announced that Kuwait joined the OECD/G20 Inclusive Framework on BEPS, an international collaboration with 145 member countries. As indicated in the announcement, Kuwait has agreed to participate in the Two-Pillar Solution to reform international taxation laws and ensure that multinational enterprises pay their fair share of taxes wherever they operate. Read more in this PwC alert.
The UAE publishes additional guidance on corporate tax regime
As previously reported, the UAE Ministry of Finance and Federal Tax Authority have published guidance (an Explanatory Guide to the CT Law in May 2023, a Corporate Tax General Guide in September 2023 and Guide on Exempt Income: Dividends and Participation Exemption and a Transfer Pricing Guide in October 2023) to help taxpayers analyse and apply various provisions of the new UAE corporate tax regime. These are now analysed in this PwC Tax Insights.
New Zealand
Tax Tips - November 2023
The previous Government introduced the Digital Services Tax (DST) Bill to Parliament in August 2023, which proposes to tax the digital economy unilaterally if sufficient progress toward a global solution to the taxing of digital profits is not made. The Bill has now lapsed and will need to be reinstated by the incoming Government. If enacted, this could come into effect as early as 1 January 2025. In this edition of Tax Tips we cover: 1) What would a New Zealand DST look like and who would it apply to? 2) When might this apply? 3) What are other countries doing in this space? and 4) What does this mean for New Zealand?
South Africa
SARS issuing transfer pricing information-requests on cross-border loans
The South African Revenue Service (SARS) has started issuing information request letters in relation to cross-border intercompany loans which are potentially subject to SA’s transfer pricing rules. Taxpayers should therefore ensure that the necessary documentation and evidence are in place to support the arm’s length nature of such loans. Read more in this PwC alert.
PwC Synopsis - October 2023
This edition includes: 1) When is a debt considered bad? 2) South Africa’s controlled foreign company (CFC) tax regime – an outlier? 3) Secondment of non-resident employees to South Africa…to tax or not to tax? and 4) SARS watch.
South Africa updates corporate income tax return guidance
To simplify the completion of the Income Tax Return for Companies (ITR14), the South Africa Revenue Service has updated its external guide to provide additional clarity on the information required when completing the ITR14. Furthermore, to address anticipated queries, frequently asked questions have also been published on their Corporate Income Tax and Completing an ITR14 webpages.
Switzerland
For the latest updates on current topics, see this PwC Switzerland Insights page.
US
Key issues under the new proposed foreign currency regulations
As reported previously, Treasury and the IRS recently released proposed regulations under Section 987 on the taxation of foreign currency translation gains or losses arising from qualified business units (QBUs) that operate in a currency other than the currency of their owner. The 2023 proposed regulations largely retain the methodology of the 2016 final but not yet effective Section 987 regulations. The proposed regulations offer an election to utilise a methodology similar to the Section 987 regulations proposed in 1991 - by treating all items of a QBU as marked items, subject to a loss suspension rule - and an election to recognise all Section 987 gain or loss with respect to a QBU on an annual basis. Read more in this PwC Tax Insights. Join our panel of specialists in a webcast on Wednesday 29 November at 4pm as they discuss these changes and more. Register here.
Pillar Two Safe Harbors: The CbCR journey
In this Cross-border Tax Talks episode from 15 November, Doug McHoney (PwC’s International Tax Services Global Leader) is joined by David Ernick, a Principal with PwC’s Washington National Tax Services Transfer Pricing Practice and former Associate International Tax Counsel at the US Treasury Department. They discuss Country-by-country reporting (CbCR) transitional safe harbor rules, including the safe harbor tests, exclusions to the rules, the difference between the safe harbor rules and the full GLoBE rules, as well as whether a CbCR is ‘qualifying’. Doug and David also discuss the history and implementation of public CbCR.
Policy on Demand series
- Key for Congressional leaders to hear from companies on tax policy
In this episode from 20 November, Rohit Kumar (PwC’s National Tax Services Practice Co-Leader) shares his insights on the continuing resolution Congress recently passed to fund the government through early next year and what it means for a year-end tax package. - Government funding addressed, longer-term strategy needed for tax policy
In this episode from 17 November, Chairman Dave Camp, PwC’s Senior Policy Advisor shares his insights on how Congress could look to addressing TCJA provisions in 2025 as a way to align US tax policy with global tax policy. - Week in Review
- 17 November - Congress passed a stopgap measure to fund the federal government, but the legislation did not include any tax provisions. Now is the time to be diligent around needed tax policy changes. Follow the US-China discussions to see what they mean for international relations and trade. Watch here.
Tax Readiness webcast series
- Tax Readiness: New foreign currency branch rules bring big changes
The proposed foreign currency regulations include significant changes, including the determination of taxable income or loss and foreign currency gain or loss with respect to a qualified business unit, along with elections and a new transition rule. Register here to join our panel of specialists on Wednesday 29 November at 4pm as they discuss these changes and more. - Tax Readiness: Future of Tax - Topics shaping the tax agenda
The opportunity for Tax to enable and influence business strategy has never been greater – from business model reinvention, to climate investments, and Pillar Two. On this webcast taking place on Tuesday 12 December at 7pm, we'll share the new capabilities that leading tax functions are prioritising to support their organisation's broader commercial strategy. Register here. - Tax Readiness: Don't leave value on the table - elevating your compliance function
As new technologies emerge and reporting expands globally, businesses need to continue to update and develop their technology systems to keep pace with the ever-increasing demands. A connected data strategy is the foundation for a streamlined compliance process and opens the door to opportunities in transformation, ERP integration and increased global coordination. Watch this webcast replay from 7 November, where our panel of specialists discuss how businesses can embrace an updated data strategy to help manage reporting and compliance while building value outside of the tax department.
State and Local tax
- US District Court applies economic substance doctrine in Liberty Global
The US District Court for the District of Colorado issued its opinion in Liberty Global Inc. v. United States on 31 October, granting summary judgement in favour of the government that the transaction at issue lacked economic substance. Section 7701(o) provides that, when the economic substance doctrine is relevant to a transaction, the transaction has economic substance only if (1) the transaction changes in a meaningful way the taxpayer’s economic position and (2) the taxpayer has a substantial business purpose for entering into the transaction. A key issue in Liberty Global was whether the economic substance doctrine was ‘relevant’ to the underlying transaction. Read more in this PwC Tax Insight and watch this Tax Policy on Demand episode where Laura Williams (Principal in PwC’s International Tax Services Practice) shares her insights on the case and its potential impact.
Further information
You can sign up for Tax Alerts issued by the US to be emailed to you. Subscribe using the link on this page. A back catalogue of previous webcasts and other resources are available on our US tax reform hub here.