USCIB Urges Withdrawal of Global Tax “Toolkit”

USCIB recently submitted comments to the Platform for Collaboration on Tax concerning a proposed draft “toolkit” on the taxation of offshore indirect transfers of assets. The Platform for Collaboration on Tax is a joint effort launched in April 2016 by the International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD), the United Nations (UN) and the World Bank Group (WBG). USCIB urged The Platform that the taxation of offshore indirect transfers should not be considered in the context of a “toolkit.”

The discussion draft proposes potentially significant shifts in taxing rights for “source” and “residence” countries.

“Decisions on significant shifts in taxing rights ought to be debated among countries at the appropriate multilateral fora and not resolved by guidance provided by the staff of international organizations without debate among the countries,” said Carol Doran Klein, USCIB’s vice president for tax policy.  “As such, the letter recommends withdrawal of the toolkit.”

Doran Klein added: “USCIB is concerned that tax authorities may treat the toolkits as authoritative guidance. Each toolkit should make clear that they are not authoritative and cannot override contrary guidance that is authoritative.”

Staff Contact:   Carol Doran Klein

VP and International Tax Counsel
Tel: 202.682.7376

Carol Doran Klein manages USCIB’s Taxation Committee and represents member views on key tax policies and initiatives to the U.S. government and to various international forums. She also serves as vice chair on the executive bureau of the BIAC Tax Committee, where she represents the views of U.S. business. As vice chair she participates in meetings with senior OECD secretariat officials and members of the OECD’s Committee on Fiscal Affairs.
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