Overview
Law360 cited Matthew Yeo in an article titled “US Tax Law Likely To Run Afoul Of WTO Rules, Panelists Say.” The article covered the New York University School of Law-KPMG tax symposium on April 25 in New York. According to the panelists, the Tax Cuts and Jobs Act rules concerning foreign-derived intangible income are very likely to be seen as a subsidy falling outside World Trade Organization (WTO) and Organization for Economic Cooperation and Development rules.
Yeo, who spoke on the panel, said foreign-derived intangible income, or FDII, will likely be shown to be in opposition to the WTO’s Agreement on Subsidies and Countervailing Measures. With FDII’s effective tax rate falling to about 13.125%, the WTO will compare that to the new 21% corporate tax rate under the Tax Cuts and Jobs Act, P.L. 115-97, a situation that could see the United States included on the European Union blacklist of tax havens.
The full article can be read at Law360 (subscription required).