25 October 2013

Americas Tax Center Weekly Roundup

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Latest news — Americas

Mexico’s lower House of Congress approves tax reform proposal – impacts for oil & gas and financial industries detailed

The tax committee of Mexico’s lower House of Congress revised the proposed tax reform (Revised Proposal) presented by President Peña Nieto on 8 September 2013. The full House voted on and approved the Revised Proposal on 18 October 2013, and it will now move on to the Senate for debate and vote. Overall, the tax committee accepted many of the President’s original proposals, including the elimination of the flat rate business tax (IETU) and the tax on cash deposits. A Tax Alert discusses the most significant items included in the Revised Proposal.

A second Tax Alert focuses on the most significant items for the oil & gas industry.

A third Tax Alert addresses items affecting financial institutions.

OECD report recommends new approaches to encourage business innovation via tax incentives

A new OECD report, Supporting Investment in Knowledge Capital, Growth and Innovation, stresses that effective government policies aimed at encouraging business innovation in knowledge-based capital – described as a range of intangible assets beyond just research and development (R&D) – are essential for growth in the current global economy. The use of R&D tax incentives continues to form a key policy focus of governments around the world, and as noted in the report, these incentives have both proliferated and become more generous. A Tax Alert discusses the OECD’s policy recommendations.

Panama establishes procedure for securing tax treaty benefits

Panama’s tax authorities (Autoridad Nacional de Ingresos Públicos, a.k.a. ANIP) have issued Resolution No. 201-10861, setting out the accreditation procedure to secure benefits under Double Tax Treaties (DTT) signed by Panama. This Resolution became effective on 17 September 2013. The Resolution expands the provisions of Article 762-Ñ of the Tax Code, which requires taxpayers to file a formal notification of entitlement before the tax authorities at least 30 days before carrying out the transaction for which they seek to secure DTT benefits. A Tax Alert has details on the accreditation submission method and validity period.

Canada’s second budget implementation bill receives first reading

On 22 October 2013, Bill C-4, Economic Action Plan 2013 Act, No. 2, received first reading in Canada’s House of Commons. Bill C-4 implements many of the remaining 2013-14 federal budget measures, as well as the 25 July 2012 SIFT (Specified Investment Flow-Through) and REIT (Real Estate Investment Trust) measures and 21 December 2012 technical amendments, as modified to take into account consultations and deliberations since their release. Bill C-4 also implements relief measures included in two previously issued comfort letters related to the Part XI.01 penalty tax rules for registered plans. A Tax Alert has details.

OECD publishes EY and other comments on transfer pricing discussion draft, white paper

The OECD has published comments received from EY and other organizations on its Revised Discussion Draft on Transfer Pricing Aspects of Intangibles and its White Paper on Transfer Pricing Documentation, which the OECD released as part of its project on transfer pricing simplification. The OECD plans to discuss the comments in Working Party No. 6 of the Committee on Fiscal Affairs at its November 2013 meeting and during the Public Consultation to be held in Paris on 12-13 November. Review the comments on intangibles here and on documentation here.

This week's tax treaty news in the Americas

  • Canada and EU: political agreement reached on free trade agreement
  • Curaçao and Malta: tax treaty initialed
  • Mexico and Estonia: tax treaty ratified
  • Mexico and Malta: tax treaty approved for ratification
  • Mexico and United Arab Emirates: tax treaty submitted for ratification
  • Panama and Czech Republic: tax treaty enters into force

This week’s EY Global Tax Alerts

Upcoming EY webcasts

  • Managing international trade in rapid-growth markets (7 November)
    Are you concerned about managing customs and international trade issues in rapid-growth markets? Do you want to avoid unnecessary costs and risks while maximizing the opportunities available to your organization? Our upcoming webcast can help your organization: (1) manage or reduce customs duties and the cost of doing business internationally when trading in and with the world’s fastest-growing economies and (2) consider the latest economic developments and their potential impact on tax policy. Register here.

Recently archived webcasts now available on-demand

  • Mexico tax reform means big changes and challenges for multinationals
    A recent EY webcast discussed the Mexican tax reform legislation presented by Mexico’s President to Congress in September with substantial changes to the existing laws. In addition to increasing the tax rate and removing certain deductions, the proposed reforms include anti-abuse provisions, the elimination of some taxes and the creation of new ones. These changes are complex and expected to greatly affect companies operating in Mexico, including the maquiladora industry. Watch the webcast on-demand here.

EY industry, service and issue publications

The quest for telematics 4.0: Dialogue with the value chain stakeholders
Consumer Products
Profit or lose
Financial Services
EY-Insurance-in-a-digital-world-The-time-is-now  (INSURANCE)
Life Sciences
Managing regulatory and legal risk in the digital world
Oil and Gas
New challenges, new directions: Financial accounting advisory services for the oil and gas sector
Power and Utilities
EY Plug in - Overview 2013
Top of the world
Private Equity
Private Equity, Public Exits Q3 digital edition
Real Estate
EY - Audit Committee Bulletin: Issue 5 - October 2013
Strategic Growth
EY - It's who you know: Women entrepreneurs and the impact of networks
Global Mobility Effectiveness Survey 2013
2013-2014 Worldwide personal tax guide
EY Financial services Law services
EY Transaction Law services
EY Real Estate Law services
EY Labor and Employment Law services
EY Insolvency Law services
EY Distribution Law services
EY Corporate Law Services
Multiple: European buyouts watch, Q3 2013
Capturing synergies in dealmaking
Driving Growth
EY Rapid-Growth Markets Forecast - October 2013
Growing Beyond Innovation seminar an open conversation
Managing Finance
Partnering for performance - The CFO perspective: at a glance
Partnering for performance - CFO and the supply chain
CFOs and the changes to the Affordable Care Act
DNA of the CFO - Quick reference guide