KPMG’s Week in Tax: 22 – 26 April 2019 - KPMG Luxembourg
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KPMG’s Week in Tax: 22 – 26 April 2019

KPMG’s Week in Tax: 22 – 26 April 2019

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

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Africa

  • South Africa: Employers that have withheld tax from amounts paid to employees must submit employment tax reconciliations by 31 May 2019 for the tax period 1 March 2018 through 28 February 2019.

Read TaxNewsFlash-Africa


Asia Pacific

  • Australia: An income tax treaty has been signed between Australia and Israel.
  • India: The High Court of Telangana held that tax paid on inputs became an input tax credit only when the return that included a claim for input tax credits was filed. Accordingly, the court held that with regard to an underpayment of tax, interest was payable on the gross amount of the goods and services tax (GST) liability.
  • Thailand: A new labor law is effective from 5 May 2019, and is expected to affect many employers’ work rules.
  • Qatar: A circular issued by the tax authority on the new income tax law (generally effective 13 December 2018) clarifies the withholding tax rates, effective date, computation of penalties, and Arabic language requirements.

Read TaxNewsFlash-Asia Pacific


Europe

  • Serbia: An environmental protection levy that is based on pollution levels and type of pollutants has been enacted.
  • Sweden: The Supreme Administrative Court held that the EU state aid rules prohibit Sweden from providing a reduced 2% rate of property tax for wind turbines (instead of the standard rate of 5%).
  • EU: A KPMG report summarizes recent tax-related infringement proceedings and referrals to the Court of Justice of the European Union (CJEU).

Read TaxNewsFlash-Europe


FATCA / IGA / CRS

  • Singapore: The Inland Revenue Authority of Singapore (IRAS) is accepting common reporting standard (CRS) reports for financial year 2018. A list of “frequently asked questions” (FAQs) on CRS and CRS registration has been updated.
  • Russia: The tax authority issued a document that contains a list of types of organizations that may be considered to be financial market organizations for CRS purposes.
  • Germany: A newsletter provides financial institutions and foreign service providers with information about current developments with regards to the FATCA rules in Germany.
  • UK: HM Revenue & Customs updated its guidance on the automatic exchange of information (AEOI) and clarified the due diligence provisions.
  • United States: The IRS reminded qualified intermediary, withholding foreign partnership, and withholding foreign trust (QI / WP / WT) entities with a certification due date of 1 July 2019, that they must select the periodic-review year of their certification period by 1 July 2019.

Read TaxNewsFlash-FATCA / IGA / CRS


United States

  • The IRS announced the appointment of Peter Blessing (a managing director for KPMG’s Washington National Tax (WNT) and International Tax practices) as IRS Associate Chief Counsel (International).
  • The Federal Circuit affirmed summary judgment for the government in a taxpayer refund suit concerning an amount of a New York State brownfield re-development tax credit being subject to federal income tax.
  • Recommendations for items to be included on the 2019-2020 priority guidance plan are due by 7 June 2019. Since enactment of the U.S. tax law in 2017, the IRS and Treasury have “focused their efforts on guidance projects necessary to implement” the 2017 tax law and have published 111 items (including 30 regularly scheduled items) during the first two quarters of the 2018-2019 plan year.
  • The U.S. Tax Court held that the IRS failed to obtain written supervisory approval before the IRS’s first formal communication of its initial determination to assess penalties. Therefore, the IRS had failed to meet the burden of production for penalties under section 7491.
  • The IRS reminded QI / WP / WT entities with a certification due date of 1 July 2019 that they must select the periodic-review year of their certification period by 1 July 2019.
  • Recently enacted legislation in Kentucky includes numerous changes to the tax laws that affect businesses.
  • Alabama’s tax tribunal held that a taxpayer providing “tailgating operations” at college football games was not subject to rental tax because: (1) the customers lacked “control or dominion” over the items provided by the taxpayer; and (2) the taxpayer essentially was providing a service.
  • A bill in Arkansas (signed by the governor) updates and conforms various Arkansas tax law provisions to the Internal Revenue Code (IRC) as in effect on 1 January 2019. The state law provisions were revised as a result of the federal tax law enacted in 2017.
  • The New Jersey Division of Taxation issued guidance on the computation of the IRC section 163(j) limitation on the deduction of business interest for New Jersey purposes.
  • Legislation enacted in New York addresses certain state tax law aspects of the 2017 federal tax law including measures concerning global intangible low-taxed income (GILTI). The legislation also extends the top individual income tax rate of 8.82% through 2024.

Read TaxNewsFlash-United States


Trade & Customs

  • The U.S. Trade Representative released a list of trading partners that do not adequately or effectively protect and enforce intellectual property rights.
  • A U.S. company agreed to pay just over $75,000 to settle violations of the Ukraine sanctions regulations.
  • The U.S. International Trade Commission determined a U.S. industry is materially injured by reason of imports of steel wheels from China.

Read TaxNewsFlash-Trade & Customs


Exempt Organizations

  • Notice 2019-30 invites recommendations for items to be included on the 2019-2020 priority guidance plan. The recommendations are due by 7 June 2019.

Read TaxNewsFlash-Exempt Organizations


Indirect Tax

  • Serbia: An environmental protection levy that is based on pollution levels and type of pollutants was enacted.
  • Sweden: The Supreme Administrative Court held that the EU state aid rules prohibit Sweden from providing a reduced rate of property tax for wind turbines.
  • United States: Tax legislation in Kentucky includes changes to the bank franchise tax, excise tax on video programming services, and economic nexus for sales tax.
  • United States: Alabama’s tax tribunal held that a taxpayer providing “tailgating operations” at college football games was not subject to rental tax.

Read TaxNewsFlash-Indirect Tax

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