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US Multinational Tax Reform Options: Taxation of US Multinationals

US Multinational Tax Reform Options: Taxation of US Multinationals
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Analysis highlights Biden proposal to end $84 billion gift to big oil buried in Trump tax scam

Analysis highlights Biden proposal to end $84 billion gift to big oil buried in Trump tax scam
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This week in tax: Budgets, consultations and the EU Apple case

Debate over how to improve MAPs and APAs will bring changes this year Finance Minister Nirmala Sitharaman announced that companies will no longer be required to pay for an external audit of their annual goods and services tax (GST) return or to obtain a reconciliation statement to satisfy the rules under the GST regime. However, tax professionals are divided as to whether the change to self-certification introduces more risks for in-house tax departments that could lead to litigation. “This is a double-edged sword,” said a tax director at a leading pharmaceutical company. At the same time, African governments are looking for ways to increase tax revenue. Botswana’s annual budget was also presented to Parliament on February 1. Minister of Finance and Development Thapelo Matsheka announced a two percentage point rise in the VAT rate from 12% to 14%, as well as a number of other rate rises on withholding tax and fuel levies.

Yellen picks notable experts to join the US Treasury s digital tax talks

Clausing, Grinberg, and Kysar bring a significant amount of international tax experience to the Treasury In-house tax directors at large multinational companies and their advisors are expecting revisions to certain measures under the TCJA, including increasing the corporate tax rate and global intangible low-taxed income (GILTI) rate, following key appointments to the US Treasury. Faster developments on pillar one and two at the OECD are also expected. Former IMF director David Lipton will serve as a senior counsel to Yellen on tax policy, according to reports from Reuters. Alongside Lipton’s appointment on February 2, Deputy Assistant Secretaries Kimberly Clausing, Itai Grinberg, and Tom West, as well as Counsel to the Assistant Secretary Rebecca Kysar, were selected by the Biden administration to direct and shape domestic and international tax policy at the Treasury.

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