Daily Tax Update - June 2, 2014: Camp, Hatch Issue Statement on BEPS in Conjunction with 2014 OECD Tax Conference

CAMP, HATCH ISSUE STATEMENT ON BEPS IN CONJUNCTION WITH 2014 OECD TAX CONFERENCE:  Today and tomorrow, the OECD, USCIB, and BIAC are hosting a conference on the OECD’s current tax initiatives.  The conference includes several panels on various aspects of the OECD’s Base Erosion and Profit Shifting (BEPS) project, including panels on “treaty abuse,” transfer pricing aspects of intangibles, the digital economy, hybrids, country-by-country reporting, and information exchange.

  • Today, Ways and Means Committee Chairman Dave Camp (R-MI) and Senate Finance Ranking Member Orrin Hatch (R-UT) released a statement on the conference and the OECD’s work on BEPS.  They stated:  “[W]e are concerned that the BEPS project is now being used as a way for other countries to simply increase taxes on American taxpayers.  When foreign governments – either unilaterally or under the guise of a multilateral framework – abandon long-standing principles that determine taxing jurisdiction in a quest for more revenue, Americans are threatened with an un-level playing field….We are willing to work through these issues until an international consensus exists and we have achieved the right answer, but we will not be rushed into a bad outcome…Ultimately, we believe that the best way for the United States to address the potential problem of BEPS is to enact comprehensive tax reforms that lower the corporate rate to a more internationally competitive level and modernize the badly outdated and uncompetitive U.S. international tax structure.” 

The statement can be accessed via: http://waysandmeans.house.gov/news/documentsingle.aspx?DocumentID=383338

TREASURY RELEASES LIST OF FFIS REGISTERED FOR FATCA: The Treasury Department has released the first list of approximately 77,000 foreign financial institutions (FFIs) that have registered to comply with the Foreign Account Tax Compliance Act (FATCA).  FATCA requires certain foreign financial institutions to register with the IRS and report their U.S.-owned accounts to avoid 30% withholding on certain U.S. source payments. 

Additional information can be accessed via:http://apps.irs.gov/app/fatcaFfiList/flu.jsf.

MISCELLANEOUS GUIDANCE RELEASED:
Revenue Ruling 2014-14 announcing the rates of interest will appear in Internal Revenue Bulletin 2014-27, dated June 30, 2014.

The Statistics of Income Bulletin is available for download at IRS.gov/taxstats

Taxpayers abroad qualifying for an automatic two-month extension must file their 2013 federal income tax returns by Monday, June 16. See U.S. Citizens and Resident Aliens Abroad for more information.