Taxation

Background

U.S. businesses rely on sound international tax policies to facilitate trade and investment. Many of these policies are developed and coordinated in the OECD Committee on Fiscal Affairs (CFA). The Business and Industry Advisory Committee (BIAC) to the OECD is the channel through which business works to build and communicate international business consensus on key taxation issues to the CFA. USCIB also works through established relationships with the U.S. Treasury Department, Internal Revenue Service, and Congress to eliminate obstacles to international trade and investment in domestic tax legislation.

Objectives

Enhance the competitiveness of U.S. business by promoting sound, appropriate, and consistent international tax policy at home and abroad; eliminate obstacles to international trade and investment in U.S. tax legislation and regulations; prevent and eliminate government policies and practices that result in double taxation.

Chair

Bill Sample

Corporate Vice President, Worldwide Tax

Microsoft Corporation

Vice Chair / Past Chair

Michael P. Reilly

Vice President, Taxation

Johnson & Johnson

Vice Chair

Will Morris

Senior International Tax Counsel & Director, European Tax Policy

GE International Inc.

Staff Contacts

Carol Doran Klein

Vice President and International Tax Counsel

(202) 682-7376 or cdklein@uscib.org

Erin Breitenbucher

Program Coordinator and Office Manager, Washington

(202) 682-7465 or ebreitenbucher@uscib.org

Working Groups/Subcommittees

BIAC/ICC Subcommittee

Inbound Investment Subcommittee

Legislative and Administrative Developments Subcommittee

Tax Treaties Subcommittee

Transfer Pricing Subcommittee

Working Group on Consumption Taxes

Working Group on Environment and Energy Taxes

Working Group on Financial Services Issues

Working Group on Permanent Establishment Issues

Current Priorities

· Successfully manage the 2013 OECD International Tax Conference in Washington, D.C. on June 3-4, 2013.

· 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, including: transfer pricing guidelines for intangibles; transfer pricing simplification and safe harbors; TRACE (Treaty Relief and Compliance Enhancement); rules and procedures to resolve international taxation conflicts and double taxation disputes; 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; and, the OECD’s role in responding to the international financial crisis.

· Engage with the OECD to ensure strong business input on work related to the Attribution of Profits to a Permanent Establishment, Transfer Pricing of Intangibles and Taxation of Tradable Permits.

· Draft and submit comments to OECD on transfer pricing issues on intangibles and simplification and safe harbors on behalf of U.S. business, as well as participate in formulation of BIAC comments.

· Engage with the UN to ensure strong business input into the UN’s Practical Manual on Transfer Pricing with Developing Countries.

· Engage with the UN to ensure the work of the UN’s Committee of Tax Experts appropriately reflects business concerns.

· 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.

· 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.

· 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.

Recent Accomplishments

· Through BIAC, submitted comments on the OECD’s Revised Discussion Draft on Permanent Establishments.

· Through BIAC, submitted comments on the OECD's Revised Discussion Draft on Tax Treaty Issues Related to Emissions Permits and Credits.

· Through BIAC, submitted comments on the OECD’s Revised Discussion Drafton the Meaning of “Beneficial Owner” in Articles 10, 11 and 12 of the OECD Model Tax Convention.

· Submitted a USCIB letter to the UN’s Michael Lennard in response to the release on October 2, 2012, of a new draft of the UN Transfer Pricing Manual.

· Submitted USCIB Comments on the OECD Draft Commentary on International VAT Neutrality Guidelines.

· Submitted USCIB Comments on OECD Discussion Draft on Intangibles.

· Submitted USCIB Comments concerning the revisions to the safe harbor provisions of Chapter IV of the Transfer Pricing Guidelines and the draft memoranda of understanding.

· Submitted USCIB Comments on the draft guidelines implementing the General Anti-Avoidance Rules (GAAR).

· Submitted USCIB Comments on the Transfer Pricing Needs Assessment Tool to the OECD.

· Organized meeting with Treasury officials on provisions of the proposed Indian Finance Bill. Submitted background paper attached.

· Signed on to a trade association letter expressing deep concerns about many of the tax provisions proposed in the Indian Finance Bill 2012

· Led BIAC drafting efforts on a letter to the OECD's Pascal Saint-Amans regarding FATCA and the need for business input and broader government involvement in the intergovernmental approach envisioned by the Joint Statement issued by the United States, France, Germany, Italy, Spain, and the United Kingdom on February 8. The OECD responded with the attached letter.

· Submitted USCIB Comments on the public discussion draft related to the Interpretation and Application of Article 5 (Permanent Establishment) of the OECD Model Tax Convention.

· Submitted USCIB Comments the UN Transfer Pricing Manual to the UN Tax Committee.

· Submitted USCIB comments on the Transfer Pricing of Intangible Property to Working Party 6 and participated in OECD business consultation on these issues.

· Led BIAC drafting efforts on comments on tax treaty treatment of emission trading permits.

· Led BIAC drafting efforts on comments on definition of beneficial owner under the OECD Model Income Tax Convention.

· Led BIAC drafting efforts on comments on administrative aspects of transfer pricing.

· Submitted USCIB comment letter to the UN concerning taxation by developing countries of multinational enterprises.

· Successfully managed the 2011 OECD International Tax Conference in Washington, D.C. on June 6 -7, 2011.

· Submitted USCIB Comments on the Tax Section of the Proposed OECD Guidelines for Multinational Enterprises.

· Submitted USCIB Comments on the Draft Guide to the Mutual Agreement Procedure under the UN Model Tax Convention between Developed and Developing Countries to ICC.

· Signed on to two letters, one on November 12 and one on November 15, urging Congress to reject proposals that would increase taxes on worldwide American companies during the lame duck session.

· Led BIAC drafting efforts on comments on the scoping of a new project on the Transfer Pricing Aspects of Intangibles.