New Proposed Section 987 Regulations - TEI Comments
On March 11, 2025, TEI filed comments with the IRS and U.S. Department of the Treasury regarding proposed regulations under section 987, which were published on December 11, 2024. TEI's comments included recommending additional transactions be included in the recurring transfer group election under the proposed regulations, making the election available when companies use net value computations, and exempting CFCs from application of section 987(3). TEI's comments were prepared under the aegis of its U.S. International Tax Committee and Tax Reform Tas Force.
OECD GIR XML Users' Guide - TEI Comments
On March 20, 2025, TEI submitted comments to an Expert-Sub Group of OECD Working Party 10 regarding the Working Party's GloBE Information Return XML Schema and User Guide, which was published on January 15, 2025. TEI's comments focused on the need for the OECD to provide more information about, and examples illustrating, the XML Schema and its validation rules. TEI's EMEA Direct Tax Committee led preparation of the comments. Benjamin Shreck, TEI Tax Counsel, coordinated the comment drafting process.
Proposed PTEP Regulations - TEI Comments
On March 2, 2025, TEI submitted comments regarding the long-awaited proposed previously taxed earnings and profits ("PTEP") regulations. TEI's comments focused on the need to eliminate double taxation of PTEP by recommending a change to the proposed regulations' "share-by-share" approach to section 961 basis increases. TEI recommended that section 961 basis increases should be allocated pro-rata across all a U.S. shareholder's shares in a controlled foreign corporation. TEI's comments were prepared by members of its U.S. International Tax Committee and Tax Reform Task Force. Benjamin R.
Canadian Capital Gains Tax Increase - TEI Comments
On January 20, 2025, TEI submitted comments with the Canada Revenue Agency (CRA) regarding their administration of a potential increase in the Canadian capital gains inclusion rate. TEI noted the inappropriateness of CRA administering the increase as if it has been enacted into law when it has not, as well as the complications and financial burdens imposed on taxpayers. TEI's comments were prepared under the aegis of its Canadian Income Tax Committee. Benjamin R. Shreck, TEI Tax Counsel, coordinated the preparation of TEI's comments.
The BC Minister of Finance Responds to TEI's Submission on the Definition of Software for the PST
TEI received a letter from the British Columbia Minister of Finance in response to the Canadian Commodity Tax Committee's March 29, 2024, submission. The Committee had submitted a letter addressing the 2024 British Columbia Budget changes to the Provincial Sales Tax ("PST") definition of “software,” including the retroactive impact of the changes and the expansion of the definition.
TEI Submits Comments on CAMT Proposed Regulations
On January 16, 2025, TEI submitted comments on the proposed regulations on the Corporate Alternative Minimum Tax ("CAMT"). The Tax Reform Task Force, whose chair is Andreia Verissimo, in coordination with TEI Tax Counsel Kelly Madigan, spearheaded the comments. TEI’s comments addressed foreign tax credit considerations and provided recommendations for adjustments to AFSI related to the treatment of investments in certain financial instruments and the treatment of certain covered recognition transactions, among other concerns.
Pillar Two Reporting Simplification - TEI Comments
On December 17, 2024, TEI submitted comments to the OECD recommending it simplify the Pillar Two reporting requirements. TEI recommend the OECD help coordinate the timing of payments, adjustments, and refunds across jurisdictions, which would reduce MNE's compliance burden. Other recommendations included implementing a robust exchange of information system and a template information reporting form. TEI's comments were drafted by members of its U.S. International and EMEA Direct Tax Committees, along with the Tax Reform Task Force. Benjamin R.
TEI Submits Comments on 2024 British Columbia Budget Changes to the Provincial Sales Tax Definition of “Software”
On March 29, 2024, TEI provided a submission to the British Columbia ("BC") Minister of Finance in response to the 2024 BC provincial budget and accompanying bill that introduce changes to the definition of “software” for purposes of the BC provincial sales tax. TEI's comments addressed concerns over retroactive legislation and the breath of the Ministry's definition of "software," among other issues.
TEI Provides Submission in Response to British Columbia 2023 Consultation on PST Application for Partnerships
On December 23, 2023, TEI provided a submission to the British Columbia ("BC") Minister of Finance as part of the 2023 Consultation on the Provincial Sales Tax Application to Partnerships. TEI's comments included support for the transition to recognize BC partnerships as separate legal persons for purposes of PST and a recommendation that certain rules for partnerships mimic those for corporations.
TEI Submits Comments on Form 6765, Credit for Increasing Research Activities
On October 31, 2023, TEI submitted comments on the proposed changes to Form 6765, Credit for Increasing Research Activities. TEI's comments included both general comments and comments on specific lines. The general comments focused on concerns over the unreasonable workload and burden imposed by the proposed changes.