31 January 2014
Americas Tax Center Weekly Roundup
Latest news — Americas
OECD releases draft country-by-country reporting template for comment
On 30 January 2014, the Organisation for Economic Cooperation and Development (OECD) published an initial draft of revised guidance on transfer pricing documentation and country-by-country reporting for public comment, as part of Action 13 of its Base Erosion and Profit Shifting (BEPS) Action Plan. The draft has been eagerly anticipated and is of major interest to all multinational companies. An EY Global Alert provides details.
Honduras adopts tax reform
Honduras’s Decree No. 278-2013 adopted tax reform, effective 1 January 2014, referenced as the Law on public finances, the control of tax exemptions and anti-evasion measures. Among other changes, the tax reform: (1) repeals a law that made it possible in practice for taxpayers or withholding agents to avoid paying fines, surcharges and interest charged by the tax authorities in their tax audits; (2) creates an alternative minimum income tax; (3) re-establishes the temporary Social Contribution Tax; and (4) eliminates all customs exemptions on the import of goods and most income tax exemptions. A Tax Alert has details.
Puerto Rico enacts changes to sales and use tax rate effective 1 February 2014
Puerto Rico’s Governor has signed Act 18-2014, which modifies again the applicable sales and use tax rate, effective 1 February 2014. Act 18-2014 also makes mandatory the collection of the municipal portion of the sales tax on food and food ingredients, which is generally effective 1 July 2014, and includes other changes related to the management of sales and use tax funds. A Tax Alert has details.
Many Canadian employers are not properly reporting employee taxable benefits
Many employees are facing thousands of dollars in back income taxes and interest charges after the Canada Revenue Agency found that certain taxable benefits were not properly reported as employment income on the employees’ personal income tax returns. Their employers are also facing penalties and interest for failure to withhold and remit income taxes and the reporting of taxable benefits in their employees’ T-4, Statement of remuneration paid. A Tax Alert has details.
Canadian GST/HST exemption for patient and visitor hospital parking
There has been uncertainty since March 2013 as to whether the Canadian Department of Finance would proceed with proposed changes it announced then related to existing provisions of the Excise Tax Act (ETA) that apply GST/HST to certain supplies of parking by charities. The proposed amendments came as a surprise to hospitals and their affiliated foundations, which immediately challenged the proposed amendments. We now have clarification – draft legislation released on 24 January 2014 announced that supplies of hospital parking will generally be exempt. A Tax Alert has details.
EY Global Corporate Divestment Study released
The latest edition of EY's Global Corporate Divestment Study delves deep into leading portfolio review and divestment strategies, as well as insights around the study’s central thesis: strategic portfolio management leads to better divestment outcomes. The study’s findings come from interviews with more than 700 C-suite executives worldwide. Those surveyed span a range of sectors, with particular focus on consumer products, life sciences, oil and gas, power and utilities, and technology. To read the report and to access additional report materials, visit ey.com/divest.
EY is reaching out to CFOs through our CFO program
EY has developed a CFO program on ey.com (www.ey.com/cfo) to provide insight and guidance on areas of interest to CFOs and future finance leaders, as they seek to develop themselves, their teams and learn from others within their community. Visitors will find CFO perspectives on key issues, such as cyber-security, supply chain, sustainability, big data and more – plus videos and access to insights from the CNBC Global CFO Council, which is exclusively sponsored by EY. New content and insights are added to the site regularly.
This week's tax treaty news in the Americas
- Trinidad and Tobago and Germany: negotiations held on tax treaty revisions
This week’s EY Global Tax Alerts
- India’s Delhi Tribunal rules on application of Profit Split Method ( 29 January 2014 )
- Puerto Rico enacts changes to sales and use tax rate effective 1 February 2014 ( 29 January 2014 )
- Italy issues significant tax measures including new step-up opportunities and provisions for Digital Economy companies ( 29 January 2014 )
- Honduras adopts tax reform ( 28 January 2014 )
- South Africa requires VAT registration for nonresidents who supply electronic services ( 24 January 2014 )
- Puerto Rico’s Governor signs act affecting audited financial statements’ requirement ( 23 January 2014 )
- US IRS and Treasury issue Temporary Regulations regarding treatment of certain stock of a foreign corporation under Section 7874 ( 23 January 2014 )
- OECD provides an update on BEPS Action Plan ( 23 January 2014 )
- International tax talk quarterly series with the EY Global Tax Desk Network (11 February)
The first Global Tax Desk webcast of 2014 will focus on recent UK and Switzerland tax proposals, as well as developments from Israel and Italy – all of importance to multinationals operating in those jurisdictions. Our discussion on the UK will center on the country’s recent CFC and Patent Box reforms. Our Swiss discussion will cover the strategic direction of the next corporate tax reform. In addition, we will bring you up to date on tax developments in Israel and Italy. Register here.
- Global Payroll: one year on and closer to reality? (12 February)
Is one global payroll system an achievable goal for global organizations? Or are country-specific or regionally focused models more practical? One year ago, we asked global payroll leaders in multinational organizations to share their views. Their sentiments suggested that while one universal system is a good idea in theory, it is probably not practical. One year later, we asked this question again to see if their opinions changed. An upcoming webcast will discuss the latest global payroll study results, including core challenges, best practices and more. Register here.
Recently archived webcasts now available on-demand
- Cloud computing – a global perspective
Does your organization understand its global tax risks surrounding cloud-based transactions, and how the cloud tax landscape may change in the coming months and years? In a recent webcast, our panel of tax professionals discussed the cross border tax considerations for global cloud computing arrangements. Whether you are a cloud user or cloud service provider, this webcast will help you understand the relevant tax issues and opportunities. Watch it on-demand here.
EY industry, service and issue publications
- The supply chain management challenge
- Gauging interest for plug-in hybrid and electric vehicles in
- select markets
- Global ETF Survey: a new era of growth and innovation
- World Islamic Banking Competitiveness Report 2013–14
Power and Utilities