KPMG’s Week in Tax: 4 - 8 December 2017 - KPMG Luxembourg
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KPMG’s Week in Tax: 4 - 8 December 2017

KPMG’s Week in Tax: 4 - 8 December 2017

Tax developments or tax-related items reported this week include the following.


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U.S. tax reform

  • The U.S. Senate passed its version of a tax reform bill. With both the House and the Senate having now passed their own versions of a tax reform bill, the next step is for the House and Senate to reconcile the differences between their respective bills. This could involve a formal House-Senate conference. The House conferees have been named.

Read TaxNewsFlash-Tax Reform


  • Ireland: There are certain Irish company law implications of the “Brexit” negotiations.
  • Ireland: The value added tax (VAT) rates generally are unchanged in the budget 2018.
  • Italy: The draft budget law 2018 includes new measures reflecting a broader definition of “permanent establishment” (PE) for Italian tax law purposes—making the proposal more consistent with how the term is defined in the final report under the OECD’s base erosion and profit shifting (BEPS) Action 7.
  • Netherlands: The salary requirements for “highly skilled” migrants has been announced for 2018.
  • EU: The European Commission announced a list of 17 non-cooperative tax jurisdictions—the “black list.” 
  • EU: Taxation of profits in the digital economy at the EU level will be expected to include legislative proposals in early 2018.
  • EU: There is an agreement for a new VAT system for companies making online (digital) sales into the EU.
  • Luxembourg: Changes to the tax treatment of transferable stock options and warrants as well as in the reporting obligations of all stock option schemes were provided in a circular.

Read TaxNewsFlash-Europe

BEPS and Transfer Pricing

  • OECD: The Organisation for Economic Cooperation and Development (OECD) announced the release of the first analysis of participating countries' progress in exchanging information on tax rulings under a new minimum standard—one that provides for the spontaneous exchange of information about certain tax rulings between relevant tax administrations in a timely manner (in accordance with Action 5 of the base erosion and profit shifting (BEPS) project).

Read TaxNewsFlash-BEPS and TaxNewsFlash-Transfer Pricing


  • Nigeria: New local tax rules in Ogun state provide that employers of residents in Ogun must now submit monthly pay-as-you-earn (PAYE) tax returns using a specified form.

Read TaxNewsFlash-Africa


  • Canada: An “economic action plan” in Quebec proposes new initiatives to address tax havens, aggressive tax planning, and transfer pricing (among other things).
  • Brazil: Companies requested more time to adjust their systems in order to implement the eSocial program, and were granted a phased-in implementation schedule.

Read TaxNewsFlash-Americas

Asia Pacific

  • Australia: The Australian Taxation Office (ATO) is considering a full spectrum of tax risk across the life sciences industry—including transfer pricing, research and development (R&D), withholding tax, tax risk management and governance, and anti-avoidance (in some instances).

Read TaxNewsFlash-Asia Pacific


  • Brazil: An updated version of the technical guidance for FATCA and the common reporting standard (CRS) regimes were issued. 
  • Australia: The ATO updated guidance on the automatic exchange of information relating to FATCA and CRS regimes.
  • Ireland: An updated version of “frequently asked questions” (FAQs) concerning the CRS was issued.
  • Russia: New legislation amends Russian tax law to allow the automatic exchange of information with competent authorities of other jurisdictions.

Read TaxNewsFlash-FATCA / IGA / CRS

United States

  • Notice 2017-74 provides guidance on computing the affordability exemption under section 5000A(e)(1) with respect to bronze-level qualified health plan.
  • Notice 2017-72 provides the “required amendments list” for 2017 with respect to qualified retirement plans.
  • The partnership disguised sale rules are explained with a focus on leveraged partnerships and preformation capital expenditures.
  • The appellate division of New York’s Supreme Court held that a taxpayer’s purchase of competitive pricing reports was not a taxable information service.
  • Pennsylvania’s Supreme Court addressed the statute of limitations for filing refund claims, and held the taxpayer’s refund claim was untimely because it was not filed within three years of the income tax return’s due date for filing its corporate income tax return. 
  • The Tennessee Department of Revenue issued an annual report summarizing several tax topics addressed during 286 “informal conferences” with taxpayers conducted during fiscal year 2017—of which 35 addressed franchise and excise tax issues only, and 117 were sales and use tax-related.
  • An administrative law judge in Utah ruled that a company with no property or payroll outside the United States lacked the requisite business activity outside the United States to qualify as a foreign operating corporation to support a corporate taxpayer’s deduction for half of the foreign company’s adjusted income. 

Read TaxNewsFlash-United States

Exempt Organizations

  • Provisions in the House and Senate versions of tax reform would affect tax-exempt organizations and their donors.
  • Notice 2017-73 concerns donor advised funds and outlines the approach of future intended guidance. 

Read TaxNewsFlash-Exempt Organizations

Trade & Customs

  • A U.S. company agreed to pay approximately $1.2 million to settle its potential civil liability for 37 “apparent violations” of Iranian sanctions for shipments of dental equipment and supplies from the United States to distributors in third countries, with knowledge or reason to know that the goods were ultimately destined for Iran.  
  • The U.S. International Trade Commission (ITC) announced its determination that a  U.S. industry was being materially injured by reason of imports of biodiesel from Argentina and Indonesia.

Read TaxNewsFlash-Trade & Customs

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