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:
- 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”).
Magnifying Your Voice with USCIB:
- 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 key international markets to American business
- Build consensus with like-minded industry peers and participate in off-the-record briefings with policymakers both home and abroad.
Recent Accomplishments:
- Submitted a letter to Secretary Mnuchin urging Treasury to remain committed to the OECD process to reform the international tax rules as part of the effort to address the tax challenges of thedigitalizing economy.
- Submitted comments to the IRS on the proposed regulations regarding guidance related to rules for determining stock ownership and Global Intangible Low-Taxed Income or “GILTI” under section 951A (IRS REG-101828-19).
- Submitted comments to the IRS on the proposed and temporary regulations regarding guidance related to rules regarding the limitation on deduction for dividends received from certain foreign corporations and amounts eligible for section 954 look-through exception (IRS REG-106282-18).
- Submitted comments to USTR on the Section 301 Investigation of France’s Digital Services Tax.
- Submitted a USCIB comment letter on New Zealand’s options for taxing the digital economy.
More Recent Accomplishments
- Submitted a USCIB comment letter on the update of the UN Practical Manual on Transfer Pricing for Developing Countries.
- Submitted USCIB comments on the proposed regulations regarding the deduction for foreign-derived intangible income (“FDII”) and global intangible low-taxed income (GILTI”) (IRS REG-104464-18).
- Submitted a comment letter on the OECD’s Public Consultation Document on Addressing the Tax Challenges of the Digitalisation of the Economy.
- Submitted a comment letter on the UK Treasury’s consultation document concerning digital services.
- Submitted a comment letter on the proposed regulations regarding guidance related to rules regarding certain hybrid arrangements under sections 245A(e) and 267A (REG-104352-18)
- Submitted a comment letter on the proposed regulations regarding guidance related to the limitation on deduction for business interest expense under section 163(j) (REG-106089-18)
- Submitted a comment letter on the proposed regulations regarding guidance related to the Base Erosion and Anti-Abuse Tax (“BEAT”) under section 59A (REG-104259-18).
- Submitted a comment letter on the proposed regulations regarding guidance related to the foreign tax credit.
- Submitted a comment letter on the proposed regulations regarding guidance related to Global Intangible Low-Taxed Income or “GILTI” under section 951A (REG-104390-18).
- Submitted a comment letter on the proposed regulations regarding the transition tax under Section 965 (REG-104226-18).
- Submitted a comment letter on the Platform for Collaboration on Tax’s revised toolkit on Offshore Indirect Transfers.
- Submitted a comment letter on the OECD Discussion Draft on BEPS Actions 8 -10 – Financial Transactions (“Discussion Draft”).
- Submitted a letter providing input regarding the direction of the UN’s subcommittee on Transfer Pricing for its work during the current term of the committee.
- Submitted a comment letter to Senators Portman and Cardin on their proposed “Protecting Taxpayers Act”.
- Submitted a comment letter to the European Commission in response to the recent issuance of two digital directives.
- Submitted a comment letter on HM Treasury’s position paper on Royalties Withholding Tax.
- Submitted a comment letter on HM Treasury’s position paper on corporate tax and the digital economy.
- Submitted a comment letter to the Treasury concerning the implementation of the new section 965.
- Submitted a comment letter on the Platform for Collaboration on Tax’s draft toolkit on the taxation of offshore indirect transfers of assets.
- Submitted a comment letter on the OECD’s request for input on work regarding the tax challenges of the digitalized economy.
- Submitted a comment letter on the OECD Discussion Draft on BEPS Action 10 – Revised Guidance on Profit Splits.
- Submitted a comment letter on the OECD Discussion Draft on BEPS Action 7 – Additional Guidance on the Attribution of Profits to Permanent Establishments.
- Submitted a comment letter on the proposed changes to OECD Model Income Tax Treaty and Commentary.
- Submitted a comment letter in response to IRS Notice 2017-38 – Implementation of Executive Order 13789 (Identifying and Reducing Tax Regulatory Burdens).
- Submitted a response to the Senate Finance Request for Comments on Tax Reform.
- Submitted a letter to Secretary Mnuchin in response to the Executive Order calling for immediate review of all significant tax regulations issued by the Department of the Treasury on or after January 1, 2016.
- Submitted a comment letter on a note by the UN Secretariat on certain procedural issues relating to the functioning of the Committee of Experts on International Cooperation in Tax Matters.
- Submitted a comment letter on the Platform for Collaboration on Tax’s Discussion Draft: A Toolkit for Addressing Difficulties in Accessing Comparables Data for Transfer Pricing Analysis.
- Submitted a comment letter to the UN on a draft report from the Subcommittee on Royalties (the Subcommittee) concerning the taxation of royalties.
- Submitted a comment letter on the OECD’s Discussion Draft on BEPS Action 2 – Branch Mismatch Structures.
- Submitted a comment letter on the OECD’s Discussion Draft on BEPS Action 4 – Approaches to Address BEPS Involving Interest in the Banking and Insurance Sectors.
- Submitted a comment letter on the OECD’s Discussion Draft on BEPS Action 7 – Additional Guidance on the Attribution of Profits to Permanent Establishments.
- Submitted a comment letter on the OECD’s Discussion Draft on BEPS Actions 8-10 – Revised Guidance on Profits Splits.
- Submitted a comment letter on the OECD’s Discussion Draft on the amendments to Chapter IX of the Transfer Pricing Guidelines.
- Submitted a comment letter on the OECD’s Discussion Draft on BEPS Action 4 – On Elements of the Design and Operation of the Group Ratio Rule.
- Submitted a comment letter on the proposed regulations under section 385.
- Submitted a USCIB response to the OECD’s request for comments on specific technical issues on implementation and on issues related to the development of the MAP arbitration provision, described in the Public Discussion Draft on Development of a Multilateral Instrument (“MLI”) to Implement the Tax Treaty related BEPS Measures (the “Discussion Draft”).
- Submitted a comment letter on collection of information requirements in the proposed regulations under section 385.
- Signed on to an Association Letter on the Proposed 385 Regulations to U.S. Treasury Secretary Lew.
- Submitted a USCIB Response to the OECD’s Discussion Draft on Treaty Entitlement of Non-CIV Funds.
- Submitted a letter on the IRS’s proposed regulations on Country-by-Country Reporting.
- Submitted identical letters to the U.S. Treasury and the OECD expressing support for mandatory binding arbitration.
- Submitted a letter on the IRS’s proposed regulations under sections 367 and 482.
- Submitted a letter on the proposed changes to the U.S. Model Income Tax Treaty to the U.S. Treasury.
- Submitted a letter to Secretary of the U.S. Treasury, Jacob Lew, on the OECD/G-20 BEPS Project.
- Submitted a USCIB Response to the OECD’s Discussion Draft on BEPS Action 8: Hard-to-Value Intangibles.
- Submitted a USCIB Response to the OECD’s Revised Discussion Draft on BEPS Action 6: Preventing Treaty Abuse.
- Submitted a USCIB Response to the OECD’s Revised Discussion Draft on BEPS Action 7: Preventing the Artificial Avoidance of PE Status.
- Submitted a USCIB Response to the OECD’s Discussion Draft on BEPS Actions 8: Revisions to Chapter VIII of the Transfer Pricing Guidelines on Cost Contribution Arrangements (CCAs).
- Submitted a USCIB Response to the OECD’s discussion draft on BEPS Action 3: Strengthening CFC Rules.
- Submitted a USCIB Response to the OECD’s Discussion Draft on BEPS Action 12: Mandatory Disclosure Rules.
- Submitted a USCIB Response to the OECD’s Discussion Draft on the B2C VAT Guidelines.
- Submitted a USCIB Response to the OECD’s Discussion Draft on BEPS Action 4: Interest Deductions and Other Financial Payments.
- Submitted a USCIB Response to the OECD’s Discussion Draft on BEPS Actions 8, 9, and 10: Discussion Draft on Revisions to Chapter 1 of the Transfer Pricing Guidelines (Including Risk, Recharacterisation and Special Measures).
- Submitted a USCIB Response to the OECD’s Discussion Draft on BEPS Action 10: Discussion Draft on the use of Profit Splits in the Context of Global Value Chains.
- Submitted a USCIB Response to the OECD’s Discussion Draft on BEPS Action 14: Make Dispute Resolution Mechanisms More Effective.
- Submitted a USCIB Response to the OECD’s Discussion Draft on Follow Up Work on BEPS Action 6: Preventing Treaty Abuse
- Submitted a USCIB Response to the OECD’s Discussion Draft on BEPS Action 7: OECD Discussion Draft on BEPS Action 7: Prevent the Artificial Avoidance of PE Status.
- Submitted a USCIB Response to the OECD’s Discussion Draft on BEPS Action 10: Proposed Modifications to Chapter VII of the Transfer Pricing Guidelines Relating to Low Value-Adding Intra-Group Services.
- Submitted a USCIB letter concerning the proposed modifications to the UN Commentary on Article 9.
- Submitted a USCIB Response to the OECD Discussion Draft on BEPS Action 11: Establish methodologies to collect and analyze data on BEPS and the actions to address it.
- Submitted a USCIB Response to the OECD Discussion Draft on BEPS Action 2: Neutralising the Effects of Hybrid Mismatch Arrangements (Domestic Rules).
- Submitted a USCIB Response to the OECD Discussion Draft on BEPS Action 2: Neutralise the Effects of Hybrid Mismatch Arrangements (Treaty Issues).
- Submitted a USCIB Response to the OECD’s Discussion Draft on the Tax Challenges of the Digital Economy.
- Submitted a USCIB letter on the OECD Paper on Transfer Pricing Comparability Data and Developing Countries.
- Submitted a USCIB letter on the OECD Discussion Draft on BEPS Action 6: Preventing the Granting of Treaty Benefits.
- Submitted a USCIB letter to the UN concerning the planned revisions to the UN Transfer Pricing Manual.
- Submitted USCIB Comments on the OECD Discussion Draft on Transfer Pricing Documentation and Country-by Country Reporting and the annexes.
- Submitted USCIB Comments to the Canadian Finance Ministry on the consultation paper on Treaty Shopping – The Problem and Possible Solutions.
- Submitted preliminary USCIB comments on several of the action items included in the OECD Action Plan on BEPS (Base Erosion and Profit Shifting) including comments on:
- Action Item 1 on digital economies (including an appendix)
- Action Item 2 on hybrid mismatches
- Action Item 4 on interest deductions
- Action Item 6 on prevention of treaty abuse & Action Item 7 on the prevention of the artificial avoidance of permanent establishment (PE) status
- Action Item 9 on risks and capital – as it relates to assuring that transfer pricing outcomes are in line with value creation.
- Signed on to a trade association letter on February 20, 2013 expressing concerns about the rapidly evolving policy views of the Indian Competent Authority and other Indian Revenue authorities. A response from the Indian Government was received on April 18, 2013.
- 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 draft guidelines implementing the General Anti-Avoidance Rules (GAAR).
- 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.
- Submitted USCIB Comments the UN Transfer Pricing Manual to the UN Tax Committee.
- Submitted USCIB comment letter to the UN concerning taxation by developing countries of 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.
News Stories
USCIB Urges Treasury to Work With OECD on Digital Taxation (10/8/2019) - USCIB Urges Treasury to Work With OECD on Digital Taxes
USCIB Reports on Public Hearing on Digital Services Tax (8/20/2019) - USCIB submitted comments on August 20 to the Section 301 Committee on the Investigation of France’s Digital Services Tax (DST). According 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
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
