Overview
Supreme Court Limits Reach of Criminal Tax Obstruction Statute: In Marinello v. United States, No. 16-1144, 583 U.S. __, the Supreme Court held that to convict a defendant under section 7212(a)—which generally makes it a crime corruptly or by force or threats of force, to obstruct or impede, or endeavor to obstruct or impede, the due adminstration of the Internal Revenue Code—the federal government must prove the defendant was aware of a pending tax-related proceeding, such as a particular investigation or audit, or could reasonably foresee that such a proceeding would commence.
European Commission Proposes New Rules on Digital Economy Taxation: The European Commission announced two new legislative proposals intended to ensure that digital business activities are taxed in a fair and growth-friendly way in the EU. The first proposal aims to reform corporate tax rules so that profits are taxed in jurisdictions where businesses have significant interaction with users through digital channels; this proposal forms the Commission’s preferred long-term solution. The second proposal would implement a 3% interim tax on certain gross revenues from online placement of advertising, sale of collected user data, and digital platforms that facilitate interactions between users; this proposal is intended to cover, in the short-term, the main digital activities that currently escape tax altogether in the EU.
European Commission Adopts Counter-Measures Against Non-Cooperative Jurisdictions: The European Commission announced that it adopted guidelines intended to guarantee that EU external development and investment funds cannot be channeled through entities in countries on the EU’s common list of non-cooperative jurisdictions.