Daily Tax Update - November 13, 2014: OECD Announces Plans to Involve Developing Countries in BEPS

OECD Announces Plans to Involve Developing Countries in BEPS:  Today, the OECD released its Strategy for Deepening Developing Country Engagement (Strategy) for the base erosion and profit sharing (BEPS) project.  In the Strategy, the OECD stated that it plans to strengthen developing countries’ involvement in the decision-making processes and technical work of BEPS.  This strategy builds on the new structured dialogue process the OECD developed to work with developing countries.  The new process is built on three pillars: (1) direct participation in the Committee on Fiscal Affairs and its subsidiary bodies; (2) regional networks of tax policy and administration officials; and (3) capacity building support.

Hong Kong and United States Enter into FATCA Agreement:  Hong Kong announced it signed an inter-governmental agreement with the United States that will facilitate FATCA compliance by Hong Kong financial institutions.  Under this agreement, Hong Kong financial institutions must report account information of US account holders directly to the IRS.  Reporting will begin in March 2015.  Earlier this year, Hong Kong announced that it expected an agreement to be a Model 2 IGA.

Supreme Court Hears Oral Arguments in Maryland Tax Case:  Yesterday, the Supreme Court heard oral arguments in the case of Comptroller of the Treasury of Maryland v. Wynne, which involves the issue of whether the state of Maryland can refuse to grant a credit against Maryland county income taxes imposed on income earned (and already taxed) in other states with respect to a resident of the state of Maryland.