USCIB Taxation Committee

Transcription

1 USCIB Taxation Committee Michael Reilly, VP, Tax, Johnson & Johnson, Chair of the USCIB Tax Committee Bill Sample, Corporate Vice President, Worldwide Tax, Microsoft Corporation, Vice Chair of the USCIB Tax Committee Lynda Walker, VP and International Tax Counsel, USCIB Objectives: Build international business consensus enhancing U.S. business competitiveness by promoting economically sound taxation policies. Prevent and eliminate government policies and practices that result in double taxation. Present views of USCIB members directly to U.S. and international policy makers utilizing our extensive network and exclusive international affiliations to provide early input and active participation in the policy process. Subcommittees: BIAC /ICC Inbound Investment Legislative and Administrative Tax Treaties Transfer Pricing Working Groups: Business Restructuring Consumption Taxes Financial Services Environment & Energy Taxes Tax Administration

2 Recent Accomplishments: As a petitioner on the issue of the arm s length standard under the OECD Transfer Pricing Guidelines, signed on to the motion for leave to file amicus briefs in the Xilinx case that was granted. Successfully managed the 4 th OECD Tax Conference in Washington, D.C, The OECD's Evolving Role in Shaping International Tax Policy. Ensured our members views were heard through extensive comments to the U.S. Department of Treasury and IRS on proposed Transfer Pricing Services and Cost Sharing Regulations. Supported efforts of PACE, the business coalition Promote America s Cooperative Edge, and signed two letters in opposition to the Administration s proposal to repeal the current deferral system; one on March 24, 2009 and one on July 23, Submitted USCIB comments on the OECD Discussion Draft on Transfer Pricing Aspects of Restructuring and led the drafting efforts on the separate BIAC comments. Participated in the recent OECD Consultation with governments on Transfer Pricing Aspects of Business Restructurings. Led BIAC drafting efforts on comments to the OECD Discussion Draft on the Revised Article 7 (Business Profits). Through BIAC, participated in the recent OECD Consultation on the Revised Article 7 (Business Profits). Coordinated BIAC drafting efforts on comments to the OECD Discussion Draft on Transactional Profit Methods. Through BIAC, participated in recent OECD Consultation on Transfer Pricing Comparability and Transactional Profit Methods Issues. Chaired and coordinated BIAC comments to OECD on Transfer Pricing Comparability Issues.

3 Current Priorities: Present views of USCIB members directly to U.S. and international policy makers utilizing our extensive network and exclusive international affiliations to provide early input and active participation in the tax policy process. Provide leadership and business perspective in shaping policy working through BIAC on key OECD projects. Engage with the OECD to ensure strong business input on work related to the Attribution of Profits to a Permanent Establishment, Business Restructurings; Taxation of Tradable Permits; Tax Treaty Treatment of Collective Investment Vehicles; VAT/GST Guidelines for Cross-Border Supplies of Services and Intangibles; and Global Tax Administration issues. Through BIAC, work with the OECD to ensure the maintenance of an effective system for monitoring the implementation of and revisions to the OECD Transfer Pricing Guidelines and the OECD Model Income Tax Treaty. Promote business interests to the U.S. Treasury and the U.S. House of Representatives Ways and Means and Senate Finance Committees on International Tax Reform and U.S. Competitiveness. Support amendments to the U.S. Internal Revenue Code, including enactment of foreign tax simplification provisions that would significantly reduce the burden of complexity for U.S. multinationals and enhance their international competitiveness. Comment to the U.S. Senate and the Treasury Department on pending bilateral tax treaties; offer amendments to ongoing revisions of the U.S. Model Tax Treaty and the OECD Model Double Taxation Convention.

4 Current Projects: Business Restructurings Tax Administration & the Enhanced Relationship Taxation and Tradable Permits Tax Treaty Treatment of Mutual Funds (Collective Investment Vehicles) Rules and Procedures to Resolve International Taxation Conflicts and Double Taxation Disputes Modifications to Transfer Pricing Guidelines Application of Consumption Taxes on Services and Intangibles Through International VAT/GST Guidelines The Forum on Tax Administration s Study of Tax Intermediaries The OECD s Current Plan for Enlargement and Expansion The OECD s Role in Responding to the International Financial Crisis

5 The Importance of the OECD s Work Program to Business & the Value of USCIB Involvement: Examples: Business Restructurings - Multinational businesses frequently restructure to meet market demands and manage an ever-changing competitive environment - Governments often feel unequipped to anticipate new business models and their impact on tax revenues - OECD Governments began to express concern that the lag of government expertise and ability to predict business behavior was inhibiting their ability to protect their fisc - January 2005: OECD began dialogue with business on the application of the Transfer Pricing Guidelines to Business Restructurings - January 2010: a public report from the OECD s Committee on Fiscal Affairs ( CFA ) is expected Tradable Permits - Fall 2008: Tax Directorate asked BIAC to gather business experts for brainstorming session - June 2009: Joint government business scoping session - Project parameters to be developed and sent to CFA Bureau in December Project with technical working group comprised of business and government representatives expected to begin in 2010 Global Tax Administration - Global Forum on Harmful Tax Practices o Established in 1998 to eliminate unfair competition, improve transparency and establish effective informational exchange - Global Forum on Tax Administration

6 o Formed in 2002 in recognition of potential for improvements to tax administration that might flow from regular exchanges of experiences and approaches and identification of best practices o Tax Intermediaries Project and the enhanced relationship - Global Forum on Tax Transparency o Just created with 90 countries in response to the recent global economic crisis o Internationally Agreed Tax Standard: requires exchange of information on request in all tax matters for the administration and enforcement of domestic tax law without regard to a domestic tax interest or bank secrecy for tax purposes.

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