On 15 September 2023, the IRS released private letter ruling 202337007 (PLR). The PLR provides that a conversion of an entity disregarded for federal income tax purposes into a domestic corporation does not, by itself, give rise to a deemed exchange of debt.
On 9 March 2024, the Biden Administration released its proposed budget for fiscal year 2025, and the Treasury Department released its General Explanations of the Administration’s Fiscal Year 2025 Budget Proposals, commonly known as the “Greenbook.” Many of the proposals in this year’s Greenbook appeared in earlier years, but a few proposals are new or modified. Due to the divided Congress and competing political priorities during a general election year, there is little chance that any of the Greenbook proposals will be passed into law in 2024. However, the Greenbook illustrates the consistency of the President’s tax policy objectives during his first term and maps out priorities for a possible second term.
On 5 March 2024, Treasury and the IRS published Treas. Reg. § 1.48D-6 (“Final Regulations”), which implements the section 48D(d) election allowing eligible taxpayers to treat the amount of the advanced manufacturing investment credit (“CHIPs Credit”) established under the Creating Helpful Incentives to Produce Semiconductors Act of 2022 as a payment against Federal income tax liabilities, i.e., a “direct pay election” For eligible taxpayers seeking to treat the CHIPs Credit allowed in any tax year as a payment against Federal income tax liabilities in lieu of claiming the credit, the Final Regulations generally retain the structure and framework for administering the election laid out in proposed and temporary regulations, with welcome modifications to clarify key issues relating to the limitations for making the elective payments, the ‘denial of double benefits’ rule, and the election’s pre-filing requirements.
In this webinar session, we discussed the latest audit trends and focus areas of the cell for large enterprises, the Transfer pricing cell and the Special tax investigation office (e.g., tax treatment of reorganizations, EBITDA 30%-rule, group contribution, transfer pricing implications of financial transactions, hard-to-value intangibles, etc). We analyzed the triggers leading to a tax audit and best practices on how to best handle a tax audit. Finally, we looked ahead and discussed the impact of new regimes, such as CFC, Pillar two, the public CbCR, and multilateral tax audits.
In this session, we covered the expected implications for VAT audits going forward and gave an overview of the expected areas of focus. VAT and customs often go hand in hand, hence we also covered customs audits and investigations which are very complex and are often difficult to handle for groups due to limited compliance resources in this field. We also took this opportunity to touch upon the difficulties faced by companies regarding the different sanction packages adopted by the EU Commission and uncovered what a typical trade investigation looks like and what the focus areas are. Finally, we provided recommendations on how to best avoid an adverse outcome by implementing quality control and monitoring procedures.
Baker McKenzie’s Global Disputes Forecast 2024 reports that corporations perceive a high risk of disputes in the field of employment-related tax issues.
In this webinar, we unveiled what we think will be the areas of focus of the Belgian tax authorities, as well as the impact of the most recent case law in these areas.
On 29 December 2023, the People’s Ministry of Economy, Finance and Foreign Trade (MPPEFCE) issued Resolution No. 010-2023 (“Resolution 010“) and Resolution No. 011-2023 (“Resolution 011“) (together, “Resolutions“) establishing the rules on the organization and operation of the Superior Council for Tax Harmonization and the tables of maximum values applicable to state and municipal taxes and fees. The Resolutions were published in Official Extraordinary Gazette No. 6,783 and became effective upon its publication.
On Thursday, 7 March 2024, the Tax Subcommittee of the House Committee on Ways and Means held a hearing on the Organization for Economic Co-operation and Development (OECD) inclusive framework’s Pillar One project. The hearing marked Congress’ first public inquiry dedicated solely to Pillar One since the release of the draft Multilateral Convention to Implement Amount A of Pillar One (MLC) and the final Amount B report. The same Subcommittee examined both Pillar One and Pillar Two in a July 2023 hearing that featured then-Deputy Assistant Secretary for International Tax Affairs Michael Plowgian.
On Friday, 15 March 2024, the UAE Ministry of Finance (“UAE MoF”) issued a public consultation on the potential framework that the UAE will introduce to implement Pillar 2, the global minimum tax framework. The consultation can be accessed here: https://mof.gov.ae/global-minimum-tax-public-consultation/. The deadline to provide input into the consultation is 10 April 2024.
On 28 February 2024, Regulatory Resolution 11/2024 (“RR 11/2024”) of the Tax Agency of the Province of Buenos Aires (TABA) was published in the Official Gazette of the Province of Buenos Aires. The resolution regulates the additional advance payment (“Additional Advance Payment”) on gross income tax (GIT) established in Article 136 of Law 15,479 (Tax Law 2024), which establishes that taxpayers who comply with the parameters established in the RR 11/2024 shall pay an additional GIT advance payment equal to four times the amount of tax determined in the advance payment for the month of October 2023.