Daily Tax Update - July 8, 2015: Senate Tax Reform Working Groups Release Reports

Senate Tax Reform Working Groups Release Reports:  Five bipartisan working groups of the Senate Finance Committee released reports today reviewing options for tax reform.  The international tax reform group’s report discussed measures including a one-time transition toll charge in connection with a move to a new international tax system, a patent box regime for intellectual property, additional base-erosion measures, and limiting tax breaks related to interest expenses, among many others.
The other four groups focus on individual income tax, business income tax, savings and investment, and community development and infrastructure. 

UK to Cut Corporate Tax Rate:  The Summer Budget Report – July 2015, released today by UK Chancellor of the Exchequer George Osborne, announced plans to reduce the 20% UK corporate tax rate to 19% in 2017, then to 18% in 2020.  The budget included several other major tax measures including a new supplementary 8% tax on banking sector profit in excess of £25,000,000 starting in January 2016, elimination of “non-domicile” status for certain long term residents effective in April 2017, and increased anti-abuse penalties and measures.

European Parliament Encourages Country-by-Country Reporting:  The European Parliament announced today that it passed a resolution calling on the European Union and its member states to require multinational corporations to report their financial performance, tax details, assets, and employee numbers country-by-country.  The resolution also called on EU financial institutions to monitor companies to ensure they do not participate in tax evasion.