On 2 June 2021, United States Trade Representative (USTR) Katherine Tai announced the conclusion of the one-year Section 301 investigations of Digital Service Taxes (DSTs) adopted by Austria, India, Italy, Spain, Turkey, and the United Kingdom.
The UAE Federal Tax Authority (FTA) announced that any person or group proven to have violated the provisions of tax legislation has the right to apply to the FTA to reduce or be exempted from an administrative penalty, provided that there is an excuse acceptable to the FTA, and that there is evidence available justifying the excuse and the violation related thereto, which led to the imposition of an administrative penalty.
On 21 January 2021, the Tax Court decided Adams Challenge (UK) Ltd. v. Commissioner, 156 T.C. No. 2, 2021 BL 19487 (2021), denying deductions to a foreign corporation because it filed its returns after the IRS had prepared returns on its behalf. Adams Challenge disputed Treas. Reg. § 1.882-4(a)(3)(i), requiring “timely” returns for a foreign corporate taxpayer to claim deductions and credits.
To provide greater clarity on the existing misconduct reporting requirements for representatives and broking staff, and enhance standards of investigations on misconduct, MAS will be revising the misconduct reporting regime. Further, to standardise industry practices on due diligence conducted on prospective representatives and broking staff, MAS will be mandating financial institutions to perform and respond to reference check requests, with a list of baseline mandatory information that must be obtained or provided in the reference check.
In Mendu v. United States, the Court of Federal Claims held that penalties for failure to timely file a Report of Foreign Bank and Financial Accounts (FBAR), commonly known as “FBAR penalties,” were not subject to the Flora full payment rule, which requires a plaintiff to make payment of the full tax amount before they bring suit in the Court of Federal Claims or any US district court for the refund of any “internal-revenue tax.”
Tax equity financing transactions have become an increasingly popular way to provide a higher rate of return for outside investors and to help developers monetize an otherwise cost prohibitive project. In a recent Tax Court decision, Olsen v. Commissioner, T.C. Memo. 2021-41 (6 April 2021), the taxpayers invested in such a venture, but the result was a complete disallowance of all tax benefits because the investment was simply too good to be true and (according to the Department of Justice) a tax shelter. For individual taxpayers in particular, this case is an effective lesson on how not to structure investments in energy equipment transactions.
Our Asia Pacific Employment & Compensation Team is pleased to provide you with our first quarterly update for 2021 highlighting key employment law changes across the Asia Pacific region. Please feel free to visit our Building a New Workforce Reality and FutureWorks sites designed to guide global employers on how to future-proof your workforce and to stay competitive in innovating and revolutionizing your working practices.
The Multistate Tax Commission (MTC) is set to revamp its transfer pricing collaboration and enforcement initiatives following the first public meeting of its State Intercompany Transactions Advisory Service (SITAS) Committee in over four years.
Government Regulation No. 40 of 2021 on the Organization of Special Economic Zones was issued as one of the implementing regulations of Law No. 11 of 2020 on Job Creation. GR-40 is consistent with the changes set out by Article 150 of the Omnibus Law on the amendment of the SEZ Law. The only differences concern the added scope of business lines provided under GR-40. In particular, GR 40 sets out more comprehensive provisions than the general provisions stipulated in the Omnibus Law and offers more facilities in SEZ.
On April 26, 2021, the US Trade Representative (USTR) published in the Federal Register a notice that makes a technical amendment to the exclusions that apply to certain products of China covered by the September 24, 2018 action (List or Tranche 3) that were exported from China before May 10, 2019, and entered the United States after May 10, 2019, and before June 15, 2019.