Comment Letters

On October 29, 2014, TEI submitted a letter to the Japanese Ministry of Finance responding to a number of Japanese Consumption Tax proposals that would affect foreign-based suppliers of electronic services. The Institute's comments addressed several areas to be considered if a mandatory registration system for foreign e-commerce providers were created. TEI has submitted comments on this issue in a number of other jurisdictions, including Canada, the European Union, and South Africa.

On October 6, 2014,  TEI submitted comments to the Inland Revenue Authority of Singapore in response to an invitation for public comment on proposed rules governing transfer pricing documentation. Notable among its comments, TEI expressed concern that the proposed rules elevate Singapore’s transfer pricing documentation requirements to a higher level than those existing under the OECD transfer pricing guidelines ahead of final recommendations from the OECD’s base erosion and profit shifting (BEPS) project.

On September 26, 2014, TEI submitted a letter to the Canadian Department of Finance setting forth the Institute’s recommended revisions to August 29, 2014, draft legislation that will restrict back-to-back loans made through intermediaries.

On September 19, 2014, TEI submitted a letter to the Canadian Revenue Agency (CRA) and Canadian Department of Finance on proposed changes to the section 156 election for nil consideration. The election allows supplies between qualifying members of a closely related group to be made free of GST/HST.

On September 17, 2014, TEI responded to the OECD’s request for input under Action 11 of its base erosion and profit shifting (BEPS) project, Establish methodologies to collect and analyse data on BEPS and the actions to address it. TEI recommended that the OECD clearly define what is meant by BEPS and BEPS behaviors, measure whether the actions taken pursuant to the OECD’s BEPS Action Plan lead to double taxation, and safeguard the confidentiality of taxpayer information and data used in the project, among other things.

On August 26, 2014, TEI submitted a letter to the British Columbia Ministry of Finance suggesting various amendments to the Provincial Sales Tax Act, the Motor Fuel Tax Act, and associated regulations. The proposed amendments would streamline administration for businesses and the Ministry and address a number of policy issues. The Institute's letter builds on earlier comments made to the Ministry in letters and meetings with Ministry officials.

On July 18, 2014, TEI submitted a letter to the Canadian Revenue Agency and Canadian Department of Finance expressing appreciation for proposed changes to the GST/HST joint venture election. The new rules will expand the availability of the election to all joint ventures engaged in commercial activities where all participants of the joint venture are also engaged exclusively in commercial activities.

On August 6, 2014, Tax Executives Institute submitted a written statement to the House of Commons Standing Committee on Finance in connection with the 2014 pre-budget consultations in Canada.

On August 1, 2014, TEI completed its first project of direct tax advocacy with China’s State Administration of Taxation (SAT), when it filed comments regarding draft administrative measures on the Chinese domestic law General Anti-Avoidance Rule (GAAR). The comments focused on how the draft measures inappropriately expand the scope of the GAAR, unfairly subject taxpayers to two independent substance-based inquiries when special tax adjustment rules also apply, and contain overly expansive document production requirements.

On July 21, 2014, TEI submitted comments to the government of Ireland regarding its public consultation document OECD Base Erosion and Profit Shifting Project in an Irish Context. TEI’s comments focused on the need for certainty should the Irish government change its corporate tax regime in conjunction with OECD’s BEPS project.