USCIB Objects to Implementation of Digital Service Taxes by France

Washington, D.C., July 17, 2019 – Responding to the recent announcement by France to implement a digital service taxes (DST), the United States Council for International Business (USCIB), which represents America’s most successful global companies, urges countries to avoid unilateral measures and instead pursue a consensus-based, comprehensive and income tax-based solution. USCIB supports the OECD Inclusive Framework process for reaching agreement on these global issues.

The French law will impose a tax of three percent on certain revenue earned by technology companies including advertising, commissions from digital marketplaces and sales of data.

“Taxes on revenues are distortive,” said USCIB Vice President for Tax Policy Carol Doran Klein. “The total tax may exceed company profit and misallocate profits to the market jurisdiction. Any solution should be treaty compliant and designed to avoid controversy. It should tax income based on where value is created by companies, including appropriate recognition of where intangibles are created. Furthermore, any solution should not discourage innovation.”

Klein also warned that the French tax will not be easy to implement and will put a significant burden on companies to set up systems to track global revenues. “Implementing such new systems would be both time consuming and expensive – not simple or easily implemented – and would divert company resources from useful profit-making activities.”

“It is unfortunate that France has decided to repeat the mistakes identified in the debate over the unsuccessful EU DST,” said Bill Sample, chair of USCIB’s Tax Committee. “I urge France to focus their energies on reaching a consensus solution within the OECD’s Inclusive Framework for a sustainable international tax system that recognizes innovation and production and minimizes the adverse impact of the costs of double taxation on business investment and growth.”

USCIB reiterated its concerns in a letter to the government of New Zealand, which is also looking at options for taxing the digital economy.

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world, generating $5 trillion in annual revenues and employing over 11 million people worldwide. As the U.S. affiliate of the International Chamber of Commerce, the International Organization of Employers and Business at OECD, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

Contact:
Jonathan Huneke, USCIB
+1 212.703.5043, jhuneke@uscib.org

USCIB Welcomes Treasury White Paper Criticizing EU State Aid Investigations

Fountain pen on taxNew York, N.Y., August 24, 2016 – The United States Council for International Business (USCIB), which champions the global interests of American companies, welcomed the U.S. Treasury’s white paper criticizing the European Commission’s ongoing state aid investigations. The investigations are aimed at recouping prior-year tax benefits freely granted by European Union member state tax authorities on companies’ global operations.

“We wholeheartedly agree with the Treasury’s conclusion that these tax investigations challenge EU member state tax sovereignty, go far beyond accepted practice and threaten to undermine ongoing efforts to strengthen international tax cooperation,” said USCIB President and CEO Peter M. Robinson. “USCIB is concerned that these moves by the EU could dramatically undercut the OECD’s efforts to build a new and stable international consensus.”

After three years of negotiations, the OECD/G20 project on base erosion and profit shifting (BEPS) designed to address corporate tax avoidance concluded last year with governments developing a framework for modernizing international tax rules.

In a blog post accompanying the release of the white paper, Robert Stack, deputy assistant secretary of the Treasury for international tax affairs, wrote: “These investigations have major implications for the United States. In particular, recoveries imposed by the Commission would have an outsized impact on U.S. companies. … The investigations have global implications as well for the international tax system and the G20’s agenda to combat BEPS while improving tax certainty to fuel growth and investment.

Implementation of the BEPS project was a major focus of USCIB’s most recent OECD International Tax Conference, held last June in Washington, D.C. USCIB provides American business input to the OECD’s work on global tax policy through its role as the U.S. member of BIAC, the Business and Industry Advisory Committee to the OECD.

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, including BIAC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

Contact:
Jonathan Huneke, VP Communications, USCIB
+1 212.7035043 or jhuneke@uscib.org

USCIB Assails UKs Catch-22 Move to Tax Non-Resident Companies

competitiveness2New York, N.Y., December 15, 2014 – The United States Council for International Business (USCIB) condemned proposed UK rules to impose a new tax on so-called “diverted profits,” saying the measure would, if implemented, have a major impact on U.S.-based multinational companies.

The rules, contained in UK Chancellor of the Exchequer George Osborne’s Autumn Statement, propose a new tax on diverted profits. Among other things, the proposed rules would impose a new tax on non-resident companies selling goods and services to UK customers by penalizing non-resident companies for avoiding a UK permanent establishment (“PE”).

“The UK’s proposal jumps the gun on ongoing discussions concerning the scope of taxation rights on non-resident companies,” said USCIB Vice President and International Tax Counsel Carol Doran Klein. “USCIB believes that the UK’s unilateral assertion of the right to tax so-called diverted profits is an undisguised attempt to bring more tax revenue into the UK, whether consistent with international norms or not.”

Klein said the UK move would undercut discussions in the 34-nation Organization for Economic Cooperation and Development (OECD) to develop rules on base erosion and profit shifting (BEPS). The BEPS project, which seeks to address growing concerns over non-taxation of certain cross-border operations and transactions by multinational firms, is examining a wide range of international tax rules, including those on permanent establishment.

“The goal of the multilateral discussions on BEPS is to reach consensus solutions to identified international tax issues,” Klein stated. “Unilateral assertions of taxing jurisdiction by any countryincrease the risk that other countries will simply abandon the process and act unilaterally. Such actions increase the likelihood of double taxation on companies, which will have a negative effect on cross-border trade and investment.”

The diverted profits tax PE rule would apply if a non-UK resident is: carrying on activity in the UK in connection with supplies of goods or services made by the non-resident company to customers in the UK without becoming subject to the UK corporate income tax;the UK tax authorities believe the non-resident is deliberately trying to avoid PE status; the non-resident’s total tax is reduced; and the company is large (sales of more than 10 million pounds in the UK).

This proposal would greatly expand UK taxing rights of non-resident companies that currently do not have sufficient presence in the UK to be subject to the regular corporate income tax, according to Klein. “Because the diverted profits tax applies when a UK nonresident does not have a PE and is imposed at a higher rate, companies will be encouraged to increase their UK presence to become subject to the regular corporate income tax,” she said. “That is, they would increase investment within the UK to pay more tax at the regular rate or pay the diverted profits tax at the higher rate on profits that will be subjectively determined by HMRC. That’s the Catch-22. “

Klein said the proposal would clearly override existing tax treaties and cause harmful double taxation. “It is intended to apply when there is no PE under the relevant rules,” she said. “Companies should be free to structure their affairs taking into account the rules as they are. If they do not have a PE under those rules, then they should not be subject to tax on their business profits. Countries should not be able to disregard agreed-upon rules simply because they do not like the outcome.

About USCIB:

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing the International Chamber of Commerce, the International Organization of Employers and the Business and Industry Advisory Committee to the OECD, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

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Governments Practitioners and Business Review OECD G20 Push to Rewrite Global Tax Rules

IRS Commissioner John Koskinen addressing the conference
IRS Commissioner John Koskinen addressing the conference

Washington, D.C., June 4, 2014 – With governments from the G20 and other advanced economies moving forward in an effort to rewrite global corporate tax rules, officials from the Organization for Economic Cooperation and Development (OECD) joined national policy makers, business executives and other tax experts to review progress and plot a realistic path  forward.

The 2014 OECD International Tax Conference, which wrapped up yesterday in Washington, D.C., provided timely insight into the OECD’s work on “base erosion and profit shifting” (BEPS), under which governments are seeking to curtail what they perceive as growing under-taxation or non-taxation of international corporate income.

The two-day conference was organized by the United States Council for International Business (USCIB) in cooperation with the OECD and the Business and Industry Advisory Committee (BIAC) to the OECD, which officially represents the view of industry in the Paris-based body, and for which USCIB serves as the U.S. member federation. It was the ninth in an increasingly popular annual series of such events held in Washington, D.C. Details are available at www.uscibtax.org.

A year after G20 leaders endorsed a 15-point action plan put forward by the OECD to draw up new global tax rules to counter base erosion and profit shifting, the first group of projects is heading towards completion. This includes work on intangibles, country-by-country reporting, tax treaty abuse, hybrids and the digital economy. The conference provided an opportunity to assess progress to date and look forward to the work that will occupy the OECD over the next year.

Pascal Saint-Amans, director of the OECD Center for Tax Policy and Administration, said that OECD was consulting closely and extensively with all countries and stakeholders involved in order to reduce uncertainties. “With the OECD’s member countries, G20 countries and stakeholders, we share the goal of limiting uncertainty in tax systems,” he said. “In the long run, the best way to make sure that global businesses can operate smoothly, taxed appropriately and not more than once, is for countries to work together rather than take uncoordinated, unilateral actions. That’s what we’re working at the OECD to facilitate, and we are fortunate to have so many interested and invested partners as part of this conversation.”

According to Bill Sample, corporate vice president for worldwide taxes with Microsoft and chair of USCIB’s Taxation Committee, the conference underscored the importance and complexity of the debate around BEPS and global tax policies, and the OECD’s centrality in it. “The OECD process gathers the most important government officials, and benefits from strong business participation,” he said. “While there have been differences of opinion, it is clear that the OECD offers the best forum for such discussions.”

Will Morris, director of global tax policy with GE International and chair of the BIAC Committee on Taxation and Fiscal Affairs, said: “There is a danger to the OECD’s central mission of promoting cross-border trade and investment if the focus of the BEPS project becomes solely about anti-abuse, rather than about improving the international tax system. Furthermore, unilateral action by states is a real risk. It’s in the interest of business to have as broad an agreement as possible, for the sake of certainty.”

Carol Doran Klein, USCIB’s vice president and international tax counsel, who serves as vice chair of the BIAC Tax Committee, said tight deadlines had made input difficult. “Events like this provide a good opportunity for OECD governments and secretariat officials to hear from the business community,” she said. “And we need to ensure that the private sector can contribute meaningfully to the detailed technical work being done across a range of areas.”

IRS Commissioner John Koskinen, the conference keynote speaker, focused his remarks on evolving cross-border regulatory compliance under the U.S. Foreign Account Tax Compliance Act (FATCA). “Although the policy issues have been settled and tax transparency is the common goal, tax administrators still must answer the question of how we make automated information work well as a practical matter,” he said.

On BEPS, Koskinen warned against the development of an overly complex country-by-country reporting system. “My hope would be that policy and legal determinations not be made without thoroughly considering the practical implications of these decisions, not only for businesses, but for tax administrations,” he stated.

Other speaker at this year’s conference included:

  • Mike Williams of Her Majesty’s Treasury in the UK, vice chair of the OECD Committee on Fiscal Affairs
  • Tizhong Liao, China’s director general of international taxation
  • Robert Stack, deputy assistant secretary for international tax affairs, U.S. Treasury
  • Eduoard Marcus, deputy director of international and European affairs, French Ministry of Finance
  • Martin Kreienbaum, director general of international taxation, German finance ministry
  • Armando Lara Yaffar, director general, Mexican finance ministry.

They were joined by other OECD experts on transfer pricing, international tax cooperation and related matters, tax officials from the U.S. and other OECD governments, and business experts from USCIB and BIAC’s global membership.

About USCIB:

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, including BIAC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

Contact:
Jonathan Huneke, VP communications, USCIB
+1 212.703.5043 or jhuneke@uscib.org

Conference agenda and other information

View conference photos (flickr)

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Tax Conference to Spotlight OECD/G20 Work on Base Erosion

OECDTAXConferenceWashington, D.C., May 15, 2014 – As governments from OECD/G20 economies work to rewrite many of the fundamental rules of global corporate taxation, an upcoming conference will provide timely, essential insight for American companies into the process. On June 2-3 in Washington, D.C., the United States Council for International Business (USCIB) will hold its ninth annual global tax conference, in cooperation with the Organization for Economic Cooperation and Development (OECD) and the Business and Industry Advisory Committee (BIAC) to the OECD.

A year after G20 leaders endorsed a 15-point action plan put forward by the OECD to draw up new global tax rules to counter “base erosion and profit shifting,” or BEPS, the first group of projects is heading towards completion. This includes work on intangibles, country-by-country reporting, tax treaty abuse, hybrids and the digital economy. The conference will provide an opportunity to assess progress to date and look forward to the work that will occupy the OECD over the next year.

“BEPS is an enormous undertaking, with far-reaching implications for how companies do business and how countries collect tax across borders,” said Carol Doran Klein, USCIB’s vice president and international tax counsel. “It is crucial that governments, OECD officials and the private sector work together to develop rules that meet government revenue goals, but also provide business with the certainty needed to make cross-border investments confidently.”

The 2014 OECD International Tax Conference, which will take place at the Four Seasons Hotel, will provide a unique opportunity for business experts to interact directly with key leadership from the OECD’s Center for Tax Policy and Administration, as well as senior tax officials from the United States and other OECD countries.

Speakers at this year’s conference include:

  • Keynote speaker IRS Commissioner John Koskinen
  • Masatsugu Asakawa of the Japanese finance ministry, who chairs the OECD Committee on Fiscal Affairs
  • Pascal Saint-Amans, director of the OECD Center for Tax Policy and Administration
  • Tizhong Liao, China’s director general of international taxation
  • Robert Stack, deputy assistant secretary for international tax affairs, U.S. Treasury
  • Will Morris, director of global tax policy with GE International and chair of the BIAC Committee on Taxation and Fiscal Affairs

They will be joined by other OECD experts on transfer pricing, international tax cooperation and related matters, tax officials from the U.S. and other OECD governments, and business experts from USCIB and BIAC’s global membership.

“Given the complexity of the issues, their significant potential impact on the taxation of international business, and the rapid progress the OECD is making on BEPS and related matters, it is essential that U.S. and other global companies gain a full understanding of the issues now and make their views known,” said Bill Sample, corporate vice president for worldwide taxes with Microsoft and chair of USCIB’s Taxation Committee.

“The business community is providing important input to the BEPS process,” added GE’s Morris. “This conference will provide an opportunity for further dialogue between the public and the private sectors on important matters affecting public confidence, revenue generation and economic growth.”

USCIB President and CEO Peter Robinson said: “The OECD is a valuable forum for informed discussion and guidance on many facets of government policy and regulation, especially in taxation. We are delighted to continue our long tradition of working with the OECD and BIAC to showcase the OECD’s important work on global tax policies.”

Robinson noted that, this year, USCIB had also partnered with the OECD on a March 10 conference in Washington on information and communications technologies, and would organize a joint conference this October on new directions in trade and investment policy.

The 2014 OECD International Tax Conference is co-organized by USCIB, the OECD and BIAC, which officially represents the view of industry in the Paris-based body, and for which USCIB serves as the U.S. member federation. Details are available at www.uscibtax.org.

About USCIB:

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, including BIAC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

 

Contact:

Jonathan Huneke, VP communications, USCIB

+1 212.703.5043 or jhuneke@uscib.org

 

Conference agenda and other information

More on USCIB’s Taxation Committee

 

USCIBs Klein Named to International Tax Review’s Global Tax 50

Carol Doran Klein
Carol Doran Klein

New York, N.Y., December 17, 2013 – USCIB’s Carol Doran Klein has been named one of International Tax Review‘s “Global Tax 50” for 2013, reflecting her own expertise and achievements as well as the business community’s close engagement with policy makers on international taxation.

In its profile of Klein, USCIB’s vice president for taxation, the influential publication said: “In a year that has seen large multilateral moves to tackle base erosion and profit shifting [BEPS], Klein has had her plate full in ensuring the concerns of U.S. business are heard. And with multiple action items on the OECD’s BEPS Action Plan scheduled for completion in 2014, her influence will continue to be critical if the views of U.S. business are to be heard in this international context.”

Now in its third year, the Global Tax 50 lists individuals and organizations who have had the greatest influence on tax policy, practice and administration in the last 12 months. Click here to read the entire listings on the International Tax Review website. Click here to read Klein’s profile and an interview.

“Hats off to Carol for this richly deserved honor,” exclaimed USCIB President and CEO Peter Robinson. “I am delighted that all her hard work in representing business views to the OECD, to the United Nations and to national governments – including our own – is being recognized. Carol has become an indispensible resource for the business community and is providing a strong, knowledgeable voice on global tax matters.”

Others included in this year’s Global Tax 50 include: Will Morris, global tax policy advisor with GE and chair of the Taxation Committee at BIAC, the Business and Industry Advisory Committee to the OECD (for which USCIB serves as the American affiliate); and Alan McLean, executive vice president for tax and corporate structure with Royal Dutch Shell, who is vice chair of the BIAC committee.

Each June, with BIAC and the OECD, USCIB holds an annual tax policy conference in Washington, D.C. This year’s conference is scheduled for June 2-3 at the Four Seasons Hotel. More information is available at www.uscibtax.org.

About USCIB:

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, including BIAC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

Contact:

Jonathan Huneke, VP communications, USCIB
+1 212.703.5043 or jhuneke@uscib.org

More on USCIB’s Taxation Committee

USCIB Responds to OECD/G20 Report on Base Erosion and Profit Shifting

New York, N.Y., July 19, 2013 – Responding to a much-anticipated report to the G20 governments from the Organization for Economic Cooperation and Development (OECD) on possible changes to global taxation rules, the United States Council for International Business (USCIB) said the report reinforces the business community’s position on compliance with existing tax rules and the need for reform.

The OECD today submitted its action plan to tackle “base erosion and profit shifting” (BEPS) to G20 finance ministers meeting in Moscow, fulfilling a request by the G20 leaders at their summit last year in Los Cabos, Mexico.

“The OECD recognizes that most tax planning complies with current rules,” said Carol Doran Klein, USCIB’s vice president for tax policy. “The report states that BEPS is not primarily an issue of tax compliance.”

Klein said USCIB supports regular review by governments to ensure their tax policies are fit for purpose. “Indeed, the U.S. tax system is in need of fundamental reform, particularly in the international area,” she said. USCIB and its partner business groups overseas believe that a consensus-based approach is most appropriate, rather than a piecemeal approach, which would likely increase double taxation. “The OECD, with its resources and the analytical ability to look at these complex issues is the best place to build consensus on these complex issues,” said Klein.

Throughout the development of the BEPS report, USCIB has worked closely with the Business and Industry Advisory Committee
(BIAC) to the OECD, which officially represents the view of industry in the Paris-based body, and for which USCIB serves as the U.S. member federation. BIAC has also issued a statement regarding the BEPS report, available here.

Bill Sample, corporate vice president for worldwide tax with Microsoft and chair of the USCIB Tax Committee, stated:  “USCIB and it members look forward to working with  BIAC and the OECD on this timely and important review of the application of current tax policies to multinational businesses. The factors driving the need for U.S. tax reform also impact the international tax system.”

Last month in Washington, D.C., the OECD, BIAC and USCIB jointly held the 8th annual OECD International Tax Conference, which featured an in-depth discussion of BEPS along with other important global tax policy topics. More information on that event is available here.

About USCIB:

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, including BIAC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

Contact:

Jonathan Huneke, VP communications, USCIB

+1 212.703.5043 or jhuneke@uscib.org

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Washington Tax Conference to Weigh New Scrutiny of Global Companies

4517_image001Washington, D.C., May 23, 2013 – Against a backdrop of slow economic growth and increased attention to international corporate tax practices, executives from a range of global companies will meet with tax experts from the OECD and member governments at the 2013 OECD International Tax Conference, June 3-4 in Washington, D.C.

Now in its eighth year, the sold-out conference is organized by the United States Council for International Business (USCIB) in cooperation with the 34-nation OECD, which is the leading global forum for discussion of international tax policies.

“The OECD is a valuable source of guidance on sensible policies and regulation, especially on the tax front,” said Rob Mulligan, USCIB’s senior vice president for policy and government affairs. “Decisions on tax policy can have a major impact on cross-border investment flows, and policy makers must make wise choices to maximize economic growth, job creation and development.”

The conference will focus on the challenge of adapting longstanding international tax principles to the modern economy. At their summit in Mexico last year, G20 leaders explicitly referred to “the need to prevent base erosion and profit shifting,” or BEPS. G20 finance ministers subsequently asked the OECD to report on this issue by their meeting last February. The OECD report and follow-on action will be high on the agenda at this year’s conference.

Related issues up for discussion include transfer pricing of intangibles, jurisdiction to tax issues and tax transparency. Efforts to integrate the views of emerging and developing economies into the OECD’s work are also on the program.

Speakers at the two-day event will include:

  • Pascal Saint-Amans, director of the OECD’s Center for Tax Policy and Administration
  • Robert B. Stack, deputy assistant secretary for international tax policy, U.S. Treasury
  • Will Morris, director of global tax policy, GE International
  • Mike Williams, director of business and international tax, Her Majesty’s Treasury, U.K.
  • Bill Sample, corporate vice president for worldwide tax, Microsoft

“Governments need clear, consistent rules to collect an appropriate amount of tax from multinational enterprises doing business in their jurisdictions,” said Carol Doran Klein, USCIB’s vice president for tax policy. “Businesses need clear and consistent rules to foster trade and investment across borders.  Developing these rules requires dialogue among countries and business. This conference is an important part of that dialogue.”

The conference is co-organized by USCIB, the OECD and the Business and Industry Advisory Committee (BIAC) to the OECD, which officially represents the view of industry in the Paris-based body, and for which USCIB serves as the U.S. member federation. Supporting organizations include the International Fiscal Association, Tax Foundation, National Foreign Trade Council, Organization for International Investment, Tax Council Policy Institute, International Tax Policy Forum and Tax Executives Institute. Details are available at www.uscibtax.org.

About USCIB
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, including BIAC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

Contact:
Jonathan Huneke, VP communications, USCIB
+1 212.703.5043 or jhuneke@uscib.org

Conference agenda and other information

 

USCIB Statement on President Obamas International Tax Proposals

New York, N.Y., February 23, 2012 – The United States Council for International Business (USCIB) is pleased to see that President Obama’s proposals on business tax reform advocate lower rates and a more efficient corporate tax system. USCIB appreciates the recognition by the President and the Treasury Department that tax reform will take time, require work on a bipartisan basis, and benefit from additional feedback from stakeholders and experts.  We and our members hope to make a positive contribution to that debate.

USCIB is, however, disappointed by the international aspects of the president’s proposals on business tax reform.  USCIB President and CEO Peter M. Robinson stated: “The international provisions fail to recognize that U.S. business competes for customers in the global marketplace.  While most countries have adopted territorial systems seeking to facilitate the competitiveness of their multinationals by taxing income only where it is earned, the U.S. is going in the opposite direction.  By proposing a minimum tax on foreign earnings, a tax on so called ‘excess profits’ and the disallowance of interest expense, the administration proposes a step backwards.”

Mr. Robinson continued: “A minimum tax on foreign earnings will simply make American firms less competitive than foreign based multi-national enterprises.  Further, the likely response in the marketplace is to make the U.S. a less favored jurisdiction for establishing the headquarters of a multi-national business.  Who would choose to set up their business in the U.S. knowing that global expansion would result in a minimum tax?  Companies currently headquartered here may not have many options, but anyone advising a new entity would certainly suggest establishing foreign control from the outset. These tax policies could have a role in the acquisition of American companies by foreign competitors.  When companies are successful in global markets, it means new jobs in their home countries to support those global business opportunities. Discouraging U.S. headquarters will result in fewer American jobs.”

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world.  With a unique global network encompassing leading international business organizations, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.  More information is available at www.uscib.org.

Contact:
Jonathan Huneke, VP communications, USCIB
(212) 703-5043 or jhuneke@uscib.org

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USCIB Welcomes Rep. Camp’s Tax Proposal

Washington, D.C., October 31, 2011– The United States Council for International Business (USCIB), a pro-trade group which represents America’s top global companies before the U.S. government and in major international forums, welcomed proposed tax reform measures put forward by Rep. David Camp (R – Mi.), chairman of the House Ways and Means Committee.

“We are pleased to see Chairman Camp’s proposal on tax reform,” said USCIB President and CEO Peter M. Robinson.  “The high rates and worldwide system of taxation of the United States are out of step with the rest of the world.  U.S. business supports efforts to achieve reform of these rules.  Chairman Camp’s proposal represents an important first step.”

Mr. Robinson underscored the importance of maintaining a level playing field for all companies in the context of U.S. tax reform.  “We must ensure that legislative alternatives intended to protect the tax base do not disfavor U.S. companies versus their competitors,” he said.  “We look forward to working with Chairman Camp and other members of Congress and the administration to achieve bipartisan business tax reform.”

Through its affiliation with the Business and Industry Advisory Committee to the OECD, USCIB works closely with the U.S. and other governments to provide business input and promote closer international cooperation on tax matters, including the OECD Model Tax Treaty and the OECD Transfer Pricing Guidelines.

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and prudent regulation.  Its members include top U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world.  With a unique global network encompassing leading international business organizations, including BIAC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment.  More information is available at www.uscib.org.

Contact:
Jonathan Huneke, USCIB
+1 212.703.5043, jhuneke@uscib.org

More on USCIB’s Taxation Committee