As a result of COVID-19, construction on a number of renewable energy projects has been repeatedly delayed, potentially jeopardizing valuable tax benefits under the investment credit provisions. Such provisions require taxpayers to make continuous progress toward completion of the project once construction has begun.
On 10 August 2021, the U.S. Senate passed the USD 1 trillion infrastructure bill, known formally as the Infrastructure Investment and Jobs Act (Infrastructure Bill). The Infrastructure Bill includes provisions for approximately USD 550 billion in new federal spending over 10 years on various transportation, broadband, utilities, and other infrastructure projects. The Infrastructure Bill contemplates that USD 28 billion in income tax attributable to the disposition of digital assets will be collected over 10 years.
Held over three days, this virtual meeting focused on key trends and issues affecting the TMT sector in the Asia Pacific region and beyond.
On 3 August 2021, Congressman Celso Sabino (PSDB-PA) submitted an amendment to Bill of Law # 2,337/2021, putting forward a 1.5% increase in the Financial Compensation for the Exploration of Mineral Resources rate on iron, cooper, bauxite, gold, manganese, kaolin and nickel operations.
On 15 June 2021, the Parliament of Ukraine adopted a law commonly referred to as the Tax Amnesty Law1 (“Law”), which introduces voluntary disclosure program with respect to unreported taxable income and assets. On 21 July 2021, the Law entered into force. By its terms, the tax amnesty will be available from 1 September 2021.
The EU Taxation and Customs Union announced that new VAT rules on cross-border business-to-consumer (B2C) e-commerce transactions will enter into effect on 1 July. The following is from the announcement: Everyone in the e-commerce supply chain is affected, from online sellers and marketplaces/platforms both inside and outside the EU, to postal operators and couriers, customs and tax administrations, right through to consumers.
On 4 May 2021, the General Attorney’s Office of the Municipality of Rio de Janeiro enacted Resolution No. 1.052/2021, introducing a new amnesty program (“Resolve Rio”). The Resolve Rio program allows taxpayers to settle their debts with the Rio de Janeiro Municipality through reductions in interest, punitive fines and late payment fees of up to 60%.
Canada’s Federal Budget 2021 (“Budget 2021”) proposes to expand the disclosure rules for certain transactions, which is in line with the measures recommended in the OECD’s Base Erosion and Profit Shifting Project, Action 12: Final Report (BEPS Action 12 Report).
The proposed expansion of mandatory disclosure rules contemplates: (i) changes to the Income Tax Act’s (ITA) existing reportable transaction rules; (ii) a new requirement to report notifiable transactions; (iii) a new requirement for specified corporations to report uncertain tax treatments; and (iv) an extension of the reassessment period in respect of transactions that are subject to the new disclosure rules and addition of penalties for failure to comply.
Welcome to the May 2021 edition of Baker McKenzie’s International Trade Compliance Update. Here are the highlights: WTO: Ministerial conference set, Covid notifications, TBT notifications; Trade Policy Reviews: Qatar, Tonga, Vietnam; DSB updates; WCO: News, Covid measures and more.
This alert provides a snapshot on how authorities have adjusted their dawn raid practice and procedures to handle unannounced inspections during lockdowns, and what you need to do to adjust your internal dawn raid procedures to a “hybrid” work environment in which staff split their time between the office and home.