The OECD Base Erosion and Profit Shifting Project is now under way, its mission being to suggest ways that countries can work together and amend their domestic laws to combat the corporate profit shifting that has so affected the tax bases of many countries.The only way to truly eliminate...

This article focuses solely on the big picture issue of whether international tax reform should take the form of a territorial system or an alternative full inclusion system. Of course, it is also necessary to compare these possible new systems with the current hybrid deferral system that has...

The Treasury and IRS issued proposed regulations [REG-100956-19] in December 2019 regarding §§863(b) and 865(e). The proposed regulations implement the TCJA's amendment to source the sale of inventory property that is produced and sold by the taxpayer at the location(s) where production...

We have written a series of articles over the past five years that explores application of the effectively connected income (ECI) rules to common profit-shifting structures. For the most part, those articles provide hypothetical examples to demonstrate how the ECI rules should apply. The...

On March 25, 2019, the FASB released Proposed Accounting Standards Update (Revised) concerning Income Taxes (Topic 740).There is a critical need to expand required disclosures for multinational groups (MNCs) under generally accepted accounting principles. Many MNCs carry material tax risks from...

This concise submission shows that from many tax policy standpoints a residence-based tax system would be significantly better than a territorial-based tax system. Policy issues mentioned include:- competitiveness,- broadening of the tax base so the rate can be lowered,- domestic job loss,-...

International tax reform proposals all suggest some transition from the present deferral system to some other system. As an integral part of that transition, it is expected as well that there will be some taxation on all “accumulated deferred foreign income” existing as of the transition...

In regard to "Options to address the broader direct tax policy challenges", I suggest that the Task Force consider several matters:- Practical "best practice" approaches for determining some minimal level of digital presence that would be treated as a PE. The Task Force should recommend language...

This is a mid-2020 Update of my 2016 BEPS Primer article. This 2020 Update is in two parts. Part 1 focused on the initial two-year BEPS project and developments concerning it since the release of the October 5, 2015 Final Reports. This Part 2 focuses on Pillars One and Two of the currently...