Submissions

On January 31, 2023, TEI filed comments and recommendations with the Canadian Department of Finance regarding proposed excessive interest and financing expense limitation (EIFEL) legislation. The Institute's recommendations included delaying the effective date of the rules, providing transition relief, and not applying the EIFEL rules when computing the foreign accrual property income of controlled foreign affiliates. TEI's comments were prepared under the aegis of its Canadian Income Tax Committee, whose Chair is Steve Saunders. Benjamin R.

On January 25, 2023, TEI submitted comments to the Organisation for Economic Co-operation and Development ("OECD") regarding the OECD's public consultation on the design elements of Pillar One, Amount B. TEI's comments included the need to broaden the scope of Amount B to achieve its goal of transfer pricing simplification, ensure timely and binding dispute resolution procedures, and clarify the interaction between Amount B and the marketing and distribution safe harbor of Amount A. TEI's comments were prepared under the aegis of its EMEA Direct Tax Committee. Benjamin R.

On November 30, 2022, TEI submitted written comments to the U.S. Department of the Treasury and Internal Revenue Service requesting guidance on changes to section 174 under the Tax Cuts and Jobs Act of 2017, effective for tax years beginning after December 31, 2021. TEI’s comments were developed by members of several TEI standing committees under the aegis of TEI’s Federal Tax Committee, whose chair is Julia Lagun, and the effort was led by Betty Mak, a vice chair of the committee.

On December 9, 2022, TEI submitted written comments to Congress regarding the changes to section 174 under the Tax Cuts and Jobs Act of 2017. The comments urged Congress to act before the end of the 2022 calendar year to postpone, if not repeal, the mandatory capitalization of expenditures under section 174. TEI’s comments were developed by members of several TEI standing committees under the aegis of TEI’s Federal Tax Committee, whose chair is Julia Lagun, and the effort was led by Betty Mak, a vice chair of the committee.

On November 17, 2022, TEI submitted comments to the IRS on proposed changes to Schedule UTP. The comments identified a variety of critical policy issues that must be evaluated in a thoughtful and deliberative manner and urged the IRS to put an indefinite hold on the proposed changes and engage in a meaningful collaboration with stakeholders to identify reasonable alternatives.

Download the letter.

On April 5, 2022, TEI submitted written comments to the Department of Finance concerning the government’s newly released draft legislative proposals to amend Canada’s income tax mandatory disclosure rules.  These proposals were initially described in the federal budget documents tabled in Canada’s House of Commons on April 19, 2021 (“Budget 2021”), on which TEI provided preliminary feedback last fall.  Consistent with our earlier submission, the enclosed comments focus intently on the perceived overbreadth of the draft proposals along with the immense compliance and administration

On May 6, 2022, TEI submitted written comments to the Department of Finance concerning the government’s newly released draft legislative proposals to limit the amount of interest and other financing expenses that businesses may deduct for Canadian income tax purposes.  These proposals were initially described in the federal budget documents tabled in Canada’s House of Commons on April 19, 2021 (“Budget 2021”), on which TEI provided preliminary comments last December.  Consistent with our earlier submission, the enclosed comments raise a range of concerns with the draft legislation

On July 21, 2022, TEI submitted preliminary comments to the Department of Finance concerning the Government of Canada’s proposal to implement Pillar Two of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (“BEPS”) two-pillar plan for international tax reform, as contemplated by the federal budget documents tabled in Canada’s House of Commons on April 7, 2022 (“Budget 2022”).  TEI’s comments highlight several areas of significant, widespread concern with the plan’s implementation in Canada, as contemplated by Budget 2022, that warrant further and careful attention.

On June 30, 2022, TEI applied for leave to intervene (as amicus curiae) in Deans Knight Income Corporation v.