USCIB Statement to US Government on Remote Worker Relief

USCIB has joined with over a dozen other associations to issue a statement on July 2 to urge the federal government to allow an employee’s wages to be treated as being earned at their normal work location and to have Congress protect health care and other workers travelling across state lines to help with the COVID-19 response. The full statement:

“The dual challenges of the COVID-19 pandemic and an economic crisis have created significant disruption and uncertainty for American workers. To lighten the burden on individuals and families, the undersigned associations strongly urge that you support legislation addressing state and local tax confusion arising for employees required to work remotely because of COVID-19.

“Providing this certainty at an otherwise uncertain time is essential. Without Congressional action, employees may receive unexpected and unwelcomed tax surprises when they file their 2020 state and local income tax returns next year – and face penalties and interest charges (and even potential double taxation) through no fault of their own. A federal solution is needed because the states are taking different and conflicting positions on how the income of workers displaced by the pandemic should be taxed. Solving this problem will ensure employees who are working remotely during the pandemic are not penalized for doing so.

“Currently, wages earned by an employee generally are subject to tax by the state where they work. However, due to COVID-19, many workers are unable to report to their normal work location and are working in a different state than usual due to local law restrictions, closed schools, family health or other reasons, complicating their state tax reporting obligations.

“The solution to this problem is simple: enact federal legislation that reduces uncertainty by allowing an employee’s wages to be treated as being earned at their normal work location. Congress should also protect health care and other workers traveling across state lines to help with the COVID-19 response from surprise or higher tax bills. The Remote and Mobile Worker Relief Act of 2020, S. 3995, recently introduced by Senators John Thune (R-SD) and Sherrod Brown (D-OH), would accomplish these goals. These solutions will maintain the status quo by putting wage earners and their employers in the same tax position they would have been in, but for the pandemic, while providing important certainty to workers who temporarily relocate to provide critical assistance during this pandemic.

“We urge the inclusion of these changes in the next COVID-19 legislation.”

USCIB Statement on OECD’s Inclusive Framework

USCIB has issued the following statement on June 23 with regards to the OECD Inclusive Framework process:

USCIB remains committed to proactive participation in the current OECD Inclusive Framework process to achieve consensus on acceptable modifications to the international tax system to properly address the tax challenges of the digitalization of the economy.

USCIB and its member companies will continue to work diligently towards a sustainable agreement and will encourage the U.S. government to remain committed to this process.

Taxation

Magnifying Your Voice with USCIB:

  • USCIB’s Tax Committee is the most respected U.S. business association on international tax issues. USCIB is the only U.S. business association formally affiliated with the world’s three largest business organizations where we work with business leaders across the globe to extend our reach to influence policymakers in international markets that are important to American business.

Trends and Challenges Facing U.S. Business:

  • Multiple sets of inconsistent rules that drive up costs and result in double taxation
  • The mounting political pressure to move towards changing the taxation of the digitalized economy
  • Efforts to unfairly increase the tax burden on companies

USCIB’s Response:

  • Build consensus with like-minded industry peers and participate in off-the-record briefings with policymakers both home and abroad
  • Engage with the OECD on the development of international taxation principles
  • Proactively shape the development of the OECD’s guidance on the taxation of the digitalized economy by demonstrating to policymakers that unilateral action can result in double taxation, decreased trade, and reduced global growth
  • Actively monitor and contribute to the work of the UN Committee of Tax Experts to ensure its alignment with the work of the OECD Tax Committee and inform policymakers of their actions’ impact on investment
  • Support enactment of foreign tax simplification provisions in the IRC that would significantly reduce the burden of complexity for U.S. companies and enhance their international competitiveness
  • Host an annual conference in Washington, DC that provides a unique opportunity for the U.S. business community to interact with key representatives from the OECD Centre for Tax Policy and Administration (“CTPA”).

More Recent Accomplishments

News Stories

Business at OECD Head Shares 2020 Policy Priorities With USCIB (2/11/2020) - Secretary General of Business at OECD (BIAC) Russel Mills visited USCIB’s Washington DC and New York offices the week of
Robinson Kicks Off 2020 With OECD, ICC France, ICC Germany  (1/21/2020) - The Organization for Economic Cooperation and Development (OECD) held its annual consultation with Business at OECD on January 13 in

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Chair

Bill Sample
Tax Policy Advisor
Microsoft Corporation

Vice Chairs

Timothy M. McDonald
Vice President, Finance & Accounting, Global Taxes
The Procter & Gamble Company

Will Morris
Deputy Global Tax Policy Leader
PwC

Louise Weingrod
Vice President, Global Taxation
Johnson & Johnson

Chad J. Withers
Global Tax Director
Caterpillar Inc.

Staff

Carol Doran Klein
Vice President and International Tax Counsel
202-682-7376 or cdklein@uscib.org

Erin Breitenbucher
Senior Policy & Program Associate and Office Manager, Washington
202-682-7465 or ebreitenbucher@uscib.org

Subcommittees

BIAC/ICC Subcommittee

Legislative and Administrative Developments Subcommittee

Tax Treaties Subcommittee

Transfer Pricing Subcommittee

Working Groups

Working Group on Consumption Taxes

Working Group on the Digital Economy

Working Group on Environment and Energy Taxes

 

2020 OECD Tax Conference

POSTPONED

Four Seasons Hotel, Washington

June 1: 8:30am – 7:30pm
June 2: 8:00am – 1:00pm

2019 Agenda with Confirmed Speakers

Now in its 15th year, this annual conference provides a unique opportunity for the U.S. business community to interact with key representatives from the OECD Centre for Tax Policy and Administration (“CTPA”) as well as key members of the OECD’s Committee on Fiscal Affairs: including Pascal Saint-Amans, Director, CTPA, and Grace Perez-Navarro, Deputy Director, CTPA. 2019 speakers included Martin Kreienbaum, Chair of the OECD’s Committee on Fiscal Affairs and Director General for International Taxation at the German Federal Ministry of Finance, and Lafayette “Chip” Harter, Deputy Assistant Secretary – International Tax Affairs. Last year’s conference focused mainly on the OECD’s work on a global solution to the tax challenges posed by the digitalization of the economy. This work is on a fast track, with the G20 having asked OECD to deliver a global solution in 2020, with an update given in June 2019. With G20 Finance Ministers meeting in Japan a few days after the conference, this event provided participants a unique opportunity to hear and discuss the latest developments on this important issue.

2019 Agenda with Confirmed Speakers

Speaker Biographies

Information for Participants

Hotel Room Block

2019 Key Topics:

  • Four sessions on the Tax Challenges of Digitalization covering Pillar 1 – Profit Allocation and Nexus, Pillar 2 – Minimum Taxes and Taxes on Base Eroding Payments and next steps
  • Tax Treaties and the Multilateral Instrument
  • Improving Tax Certainty – ICAP and MAP
  • Transfer Pricing
  • The International Tax Implications of Brexit

2019 Featured Speakers:

  • Dr. Ngozi Okonjo-Iweala – Economist and International Development Expert with over 30 years of experience working in Asia, Africa, Central Europe and Latin America (Keynote Speaker)
  • Pascal Saint-Amans – Director, Centre for Tax Policy and Administration, OECD
  • Grace Perez-Navarro – Deputy Director, Centre for Tax Policy and Administration, OECD
  • Peter Robinson – President and CEO, USCIB
  • Russel Mills – Secretary General, Business at OECD
  • Martin Kreienbaum – Director General, International Taxation, Federal Ministry of Finance, Germany
  • Mike Williams – Director, Business and International Tax, HM Treasury, United Kingdom
  • Alexandra MacLean – Director General, International and Large Business Directorate, Canada Revenue Agency
  • Harry Roodbeen – Director, International Tax and Consumer Tax, Ministry of Finance, The Netherlands
  • Gael Perraud – Co-Chair, OECD Task Force on the Digital Economy; Director of International Taxation and European Affairs, Ministry of Economy and Finance, France
  • Lafayette (Chip) G. Harter – Deputy Assistant Secretary (International Tax Affairs), U.S. Treasury
  • Doug O’Donnell – Commissioner, Large Business and International (LB&I) Division, IRS
  • John C. C. Hughes, Director, APMA, Large Business and International (LB&I) Division, IRS
  • Achim Pross – Head of International Cooperation and Tax Administration, Centre for Tax Policy and Administration, OECD
  • Tomas Balco – Head of the Transfer Pricing Unit, Centre for Tax Policy and Administration, OECD
  • Sophie Chatel – Head of the Tax Treaty Unit, Centre for Tax Policy and Administration, OECD
  • Richard Collier – Senior Advisor, Centre for Tax Policy and Administration, OECD
  • Michael Graetz – Professor of Tax Law, Columbia Law School
  • Will Morris – Chairman, Business at OECD Committee on Taxation and Fiscal Affairs; Vice Chair, USCIB Tax Committee
  • Bill Sample – Chairman, USCIB Tax Committee; Vice Chair, Business at OECD Committee on Taxation and Fiscal Affairs
  • Tim McDonald – Vice Chair, USCIB Tax Committee
  • Louise Weingrod – Vice Chair, USCIB Tax Committee
  • Other Senior Treasury and Foreign Tax Policy Officials

For more information, including how to be placed on the waiting list, please contact Erin Breitenbucher (202-682-7465 or ebreitenbucher@uscib.org).

More on USCIB’s Taxation Committee

2020 Sponsors:

PWC

 

Black Deloitte Logo

 

 

exxonmobil

 

 

 

 

For information on how to become a sponsor, please contact Abby Shapiro (617-515-8492 or ashapiro@uscib.org). 

 

Presented by:

USCIB logo

OECD

In association with:

IFA Logo
ITPF
NFTC logo

Tax Executives Institute, Inc.

Business at OECD Head Shares 2020 Policy Priorities With USCIB

Business at OECD’s Russel Mills (left, center) with IOE’s Shea GoPaul and USCIB policy staff

Secretary General of Business at OECD (BIAC) Russel Mills visited USCIB’s Washington DC and New York offices the week of February 3 to update staff on Business at OECD and OECD priorities for the year.

Mills shared that environment, biodiversity, plastics and climate change issues are moving to the top of the agenda, however there will also be a mushrooming of digitization plans and digital economy work related to changing business models and digitally enabled companies. Mills also noted that policies around digital taxation and re-skilling will be on top of the agenda for both organizations.

“We really valued our time with Russel, which gave us an opportunity to touch base on our respective organizations’ policy priorities,” said USCIB President and CEO Peter Robinson. “USCIB looks forward to a productive year working with BIAC to help drive the work of the OECD.”

Robinson Kicks Off 2020 With OECD, ICC France, ICC Germany 

ICC-Germany staff (Secretary-General Oliver Wieck, center) with USCIB President and CEO Peter Robinson (right) in Berlin

The Organization for Economic Cooperation and Development (OECD) held its annual consultation with Business at OECD on January 13 in Paris under the theme, Role of Business in Lifelong Opportunities: People First Policies to Bridge Divides. USCIB President and CEO Peter Robinson and AT&T Senior Vice President Karim Lesina provided a kick-off presentation on behalf of industry, followed by remarks by OECD Secretary-General Angel Gurria and Business at OECD’s Chairman Phil O’Reilly and Secretary-General Russell Mills.

Recommendations by Business at OECD focused on the value of relying on open markets on trade, investment, taxation and development initiatives; ensuring a people-first approach to developing new approaches to the Future of Work; and incentivizing and driving innovation in the health and environment areas in the 5G generation.

According to Robinson, it was the best-attended consultation to date, with a strong business delegation, senior OECD staff including all four Deputy Secretaries-General and OECD Ambassadors from nearly all OECD member countries. In helping to set the stage, Robinson emphasized the continued commitment of the American business community to open markets and multilateral approaches and institutions. “The necessity for inclusive multilateralism, whereby all stakeholders—including business—have a seat at the table to pursue societal challenges together is crucial,” said Robinson, who also praised the OECD in setting an appropriate example in this regard.

Lesina provided the perspective of a leading modern media company that is investing globally while driving innovation in life-long learning opportunities for its employees.  He highlighted that increased convergence and digitalization have helped create a truly global economy, providing consumers today with a unique opportunity to benefit from cross-border activity best cultivated by open market policies. Lesina emphasized the need for flexible policy and regulatory frameworks that foster innovation and drive creativity and underscored the vital role of the OECD in delivering the benefits of the digital economy to consumers everywhere through forward-looking and evidence-based policymaking.

“The Consultation provides an excellent opportunity for business to interact with OECD staff and country Ambassadors,” said Robinson. Robinson had several meetings with OECD management staff to discuss Business at OECD and USCIB priorities.

While in Paris, Robinson also visited USCIB’s International Chamber of Commerce (ICC) National Committee counterpart, ICC-France, and met with the new Secretary-General of ICC-France, Emmanuelle Butaud-Stubbs, to discuss mutual interests and priorities and cooperation in policy areas including trade and environment.

Robinson then traveled to Berlin to meet with several of USCIB’s global affiliate counterparts in Germany: ICC-Germany, the German Employers Federation (BDA) and the German Chamber of Industry and Commerce (DIHK). Secretary-General of ICC-Germany Oliver Wieck, Director of Communications Katrin Rupprecht and staff organized a discussion forum at which Robinson addressed U.S. Trade Policy in 2020. ICC-Germany members including Siemens, Thyssenkrupp and BDI attended as did Dr. Berend Diekmann, head of division for USA/Canada/Mexico from the Federal Ministry for Economic Affairs and Energy. Finally, Robinson met with BDA CEO Steffen Kampeter and DIHK Director of ATA Carnet Dr. Kornelia Ferati.

USCIB Tax Expert Featured In International Tax Review’s ‘Global Tax 50’

The International Tax Review (ITR) publication released its annual ‘Global Tax 50’ in December, featuring a rundown of the most influential individuals, organizations, geopolitical events and trends in the tax world. Among the Global Tax 50 is USCIB Vice President for Taxation Policy Carol Doran Klein. 

According to ITR, “voices like Doran Klein will be crucial” in 2020.

In her feature, Doran Klein suggested that “the biggest challenge of 2020 will be getting a political deal on digital tax that holds together the unified approach.”

This ninth edition of the ITR’s Global 50 represents the choices of the ITR editorial team, who decided who or what they thought has had the biggest impact on taxation during the past twelve months. Breaking down the entire 50 individually according to the impact they made would require too granular an approach, so the magazine list is ordered alphabetically.

New OECD Deputy Secretary General Meets With USCIB

L-R: OECD Deputy Secretary General Ulrik Vestergaard Knudsen; Head of the OECD’s Washington office Will Davis

USCIB members and staff had the opportunity to meet with the new Organization for Economic Cooperation and Development (OECD) Deputy Secretary-General Ulrik Vestergaard Knudsen on November 5 at the USCIB Washington DC office. Knudsen’s diverse policy portfolio at the OECD includes science, technology and innovation, trade and agriculture, the OECD Center for Entrepreneurship, SMEs, as well as regions and cities.

The dialogue between Knudsen and USCIB members focused on areas of mutual interest such as taxation policy, including the pressing issue of digital taxation, as well as cross-border data flows, healthcare, trade and investment, digital trade, and the Going Digital Project. Knudsen also mentioned Artificial Intelligence (AI) as an increasingly important issue for the OECD and the establishment of the OECD AI Policy Observatory, which will help countries nurture and monitor the responsible development of trustworthy AI systems for the benefit of society.

L-R: Norine Kennedy (USCIB), Will Davis (OECD Washington), Ambassador Ulrik Vestergaard Knudsen (OECD), Peter Robinson (USCIB), Eva Hampl (USCIB), Rob Mulligan (USCIB)

USCIB members from Microsoft, IBM, General Electric, CropLife America, Walmart and others, benefited from the opportunity to hear directly from OECD leadership regarding the OECD’s priorities as well as an update on the OECD accession process. USCIB participants underlined the importance of maximizing access for business and other responsible stakeholders in all OECD committee meetings.

“We are grateful that DSG Knudsen took the time to meet with U.S. business,” said USCIB Senior Vice President for Policy and Government Relations Rob Mulligan. “USCIB staff and members always appreciate an opportunity to provide perspectives to the OECD staff and secretariat to help inform the OECD’s science-based policy recommendations.”

USCIB is the U.S. national committee of Business at OECD (BIAC).

USCIB Urges Treasury to Work With OECD on Digital Taxation

In response to the continuing and extensive digitalization of the economy and increasing calls by countries to tax the income of technology companies that earn revenue in a market without necessarily having a traditional physical presence in that market, USCIB sent a letter on October 4 to Secretary of the Treasury Steven T. Mnuchin. The letter urges Secretary Mnuchin to continue to work with the OECD and other countries to achieve the best outcome for U.S. taxpayers, the U.S. Treasury, and the U.S. economy.

“USCIB believes that any fundamental changes to the international tax rules should be achieved through a consensus-based process,” said USCIB Vice President for Taxation Policy Carol Doran Klein.

According to USCIB’s letter, the best place to conduct a consensus-based process is at the OECD where over 130 countries are participating in a project to attempt to achieve consensus on possible new rules applicable to the broad digitalized economy. The United States Treasury has, to date, been an active participant in this project, including serving as vice-chair of the steering group.

USCIB Reports on Public Hearing on Digital Services Tax

USCIB submitted comments on August 19 to the Section 301 Committee on the Investigation of France’s Digital Services Tax (DST).  According to USCIB’s taxation and trade policy experts Carol Doran Klein and Eva Hampl, USCIB believes that France’s DST is actionable under Section 301 because it is unreasonable and discriminates against U.S. companies.

USCIB’s comments note that the DST is also inconsistent with France’s obligations under the World Trade Organization (WTO), the U.S.-France Income Tax Treaty, and the Convention of Establishment between the United States and France. USCIB urges USTR to engage toward a negotiated outcome, including through multilateral channels, such as the Organization for Economic Cooperation and Development (OECD) and the WTO.

The Section 301 Committee, chaired by USTR, held a public hearing on Monday. According to Klein and Hampl who attended the hearing, all of the witnesses expressed great support for the work being done at the OECD and the Inclusive Framework process, noting that unilateral measures will undermine the OECD process and make it more difficult to reach agreement. USCIB has been actively engaged at the OECD on this issue, providing business input to governments, to help guide them to a workable multilateral solution.