9 May 2014

Americas Tax Center Weekly Roundup

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Latest news — Americas


US eases enforcement for FATCA compliance until 2016 for certain taxpayers

On 2 May, the US Internal Revenue Service announced that it will treat calendar years 2014 and 2015 as transition periods for enforcing and administering implementation of the US Foreign Account Tax Compliance Act (FATCA) by withholding agents, including foreign financial institutions (FFIs). So long as a withholding agent or FFI makes a good faith effort to comply with its US withholding and reporting obligations, it will not be subject to withholding tax liabilities or penalties for failing to withhold or report in 2014 or 2015. A Tax Alert has details.

Mexico's President submits secondary legislation to Congress related to energy reform

On 30 April 2014, Mexico’s President Enrique Peña Nieto submitted to Congress secondary legislation related to the recently approved energy reform. The legislation will allow for the implementation of the energy reform, which was started in December 2013 through constitutional amendments and opened the door to private investment in the energy industry. The legislation includes certain rules related to tax and other fees to be paid to the government, along with additional regulatory guidance. A Tax Alert has details.

Brazil's Superior Court of Justice rules CFC regime incompatible with certain tax treaties

On 25 April 2014, in the case of RE 1325709, the Superior Court of Justice (STJ) – the highest court of the country in non-constitutional matters – ruled that Brazil’s controlled foreign corporation (CFC) regime is not compatible with the business profits article of the tax treaties concluded by Brazil with Belgium, Denmark and Luxembourg (corresponding to Article 7 of the OECD Model Convention). A Tax Alert has details.

Latest on OECD BEPS project – new biweekly EY Global Tax Alert

A new biweekly EY report, The Latest on BEPS, offers brief summaries of recent activity in the OECD Base Erosion and Profit Shifting (BEPS) project and the latest country-specific legislative and administrative activity related to the global focus on BEPS. Links to more detailed information are included. A new edition will be issued as a Global Tax Alert every other week to provide updates on developments during the preceding two weeks.

Ontario budget 2014-15 tabled

Ontario Finance Minister Charles Sousa tabled the Canadian province’s 2014–15 budget on 1 May 2014. The budget contains several tax measures affecting individuals and corporations. A Tax Alert has details.

Canada’s TaxMatters@EY – May 2014 issue available

TaxMatters@EY, a monthly bulletin prepared by EY Canada, provides a summary of recent Canadian tax news, publications and resources. The May 2014 issue discusses required registrations under the new Canada Not-for-profit Corporations Act, issues in managing tax data in the digital age, and a recent Federal Court of Appeals decision with respect to an inflated charitable donation scheme.

This week's tax treaty news in the Americas

  • Barbados and Malta: tax treaty protocol enters into force
  • Colombia and Korea: tax treaty ratified
  • Curaçao and US: FATCA agreement agreed in principle
  • Jamaica and US: FATCA agreement signed, text released
  • Mexico and US: amended FATCA agreement text released
  • Panama and US: FATCA agreement agreed in principle
  • Peru and Andorra: Peru expresses intention to negotiate social security agreement
  • Peru and US: FATCA agreement agreed in principle

This week's EY Global Tax Alerts

Upcoming webcasts

  • Dissecting disputes over the OECD arm’s-length principle (13 May)
    Differences in the treatment of the OECD arm’s-length principle can lead to financially significant, complex and time consuming multi-jurisdictional disputes between national tax administrators and businesses. The next quarterly "International tax talk" webcast will focus exclusively on the myriad issues that confront businesses facing such a scenario. Register here
  • Mexico tax reform: Decision time! Upcoming deadlines for elections and compliance (15 May)
    As a result of the 2014 Mexico tax reform, many taxpayers now face important decisions and deadlines to maintain certain benefits available in the past. Companies will need to make elections and comply with new rules, primarily regarding maquiladora operations in Mexico. An upcoming webcast will discuss what actions may be needed. Register here
  • Internal customs and international trade training: US defense export controls and economic sanctions (21 May)
    The next in a series of customs and international trade training webcasts targeted at Canada, Mexico and US personnel will cover Export Controls for Defense Articles and Services / US Economic Sanctions
  • Exploring the Possible: effective global tax data management (21 May)
    In an upcoming webcast, leading EY professionals from Tax Performance Advisory will take a closer look at data and the impact that finance transformation will, could and should have on the quality and value of enterprise data coming from SAP, Oracle and other ERP solutions. Tax sensitizing these systems and the data they produce is a key driver of tax function effectiveness. Register here
  • 2014 tax risk and controversy survey highlights (5 June)
    Our 2014 tax risk and controversy survey found that reputation risk, the OECD BEPS project, complex new national legislation, and more robust tax enforcement worldwide are all putting more pressure on tax function resources, processes and technology. Register for the upcoming webcast to hear highlights from the survey of 830 tax and finance executives in 25 jurisdictions. Register here

Recently archived webcasts now available on-demand

  • Global trade management: how high performers are accelerating ahead
    A recent webcast reviewed results from an EY survey of industry professionals overseeing high-performing global trade departments regarding characteristics and processes common to high performance. The survey findings provide insights into how effective trade management can enable corporate growth and competitive success. Access the webcast on-demand here

EY industry, service and issue publications

Industries
Financial Services

Government and Public Sector

  • EY The Future Governance of the IPSASB

Mining and Metals

Power and Utilities

Private Equity

Services
Advisory

Assurance

Strategic Growth Markets

Transactions

Issues
IFRS

Managing Finance