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U.S., Canadian, and European Initiatives Challenge Taxpayers - TEI Responds with Alacrity
In reviewing the Institute's most recent advocacy developments, TEI International President David M. Penney observed, "The wisdom of TEI's reviewing and improving its global tax advocacy processes is borne out by recent activities. Nearly all the items on the agenda have had a cross-border or multijurisdictional flavor."
A Global Tax Advocacy Task Force created by TEI's Board of Directors last August made a number of recommendations to improve the development and coordination of TEI's advocacy, especially where government initiatives affect cross-border activities or have multijurisdictional effects. "The Canadian 'foreign affiliate dumping' proposal," Mr. Penney added, "is a clear example of the need for strategic coordination across the Institute's substantive committees." Although framed as a domestic Canadian proposal, the legislation is aimed squarely at foreign multinationals that invest in Canada. The Canadian Income Tax Committee, together with the U.S. International Tax Committee, developed the Institute's coordinated comments.
"What's more," Mr. Penney continued, "the breadth of TEI's global advocacy continues to expand." Combined with TEI's recent letter to the Indian Ministry of Finance (reported in the March- April 2012 issue of The Tax Executive), "the Institute's recent submissions to the European Union on German VAT documentation requirements and the EU's consultation on double non-taxation show TEI's expanding advocacy agenda," Mr. Penney said. "In addition to our longstanding engagement with officials from the U.S. and Canada on tax policy and administrative issues, we foresee advances into new territory by engaging with individual countries." He explained, for example, that efforts are underway to establish a liaison relationship with the Italy Tax Agency. (The results of these efforts will be reported in future issue of the magazine.)
"As companies have gone global, tax administrations have followed suit," Mr. Penney said. The opportunities for (and challenges of) constructive engagement multiply exponentially with each cross-border issue. TEI's recent activities demonstrate that the Institute's, through its technical committees, is well-positioned to engage effectively. The implementation of the Global Tax Advocacy Task Force recommendations," he said, "can only strengthen the Institute's efforts."
U.S. Liaison Meeting Minutes
TEI President David M. Penney announced the publication of the minutes of liaison meetings with government officials from the Commissioner of Internal Revenue and his...