Article Posted date
28 June 2024
KPMG Week in Tax—published weekly to provide an overview of tax developments as reported in TaxNewsFlash—includes summaries of select tax-related news followed by a full list of reports (more information can be found at the links provided).
- United States: The U.S. Supreme Court overruled Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc., 467 U. S. 837 (1984), and held that the Administrative Procedure Act requires courts to exercise their independent judgment in deciding whether an agency has acted within its statutory authority, and courts may not defer to an agency interpretation of the law simply because a statute is ambiguous. Read TaxNewsFlash
- Canada: Canada has enacted tax measures that were previously proposed in the federal budgets of 2022, 2023, and 2024, as well as the 2023 federal economic update. These measures, which include rules related to Pillar Two, the excessive interest and financing expenses limitation (EIFEL), hybrid mismatches, and the clean economy, as well as amendments to the general anti-abuse rule, have been incorporated into Bill C-59 and Bill C-69, both of which received Royal Assent on June 20, 2024. Read TaxNewsFlash
- Australia: The Full Federal Court found in favor of the taxpayer in its appeal from the court’s earlier judgment in PepsiCo, Inc v. Commissioner, in which it held that the taxpayer was liable for withholding tax on embedded royalties and opined that if the taxpayer were not liable for royalty withholding tax, the diverted profits tax (DPT) would apply. Read TaxNewsFlash
Additional reports
United States
- U.S. Supreme Court: Chevron overruled
- South Carolina: Durable medical equipment sales and use tax exemption prospectively invalidated (Supreme Court decision)
- KPMG report: Treasury and IRS guidance on partnership “basis shifting” transactions
- KPMG report: State, local tax changes (second quarter 2024, table format)
- IRS provides tax relief for taxpayers affected by storms, flooding, winds, and tornadoes in Iowa
- IRS provides tax relief for taxpayers affected by storms, winds, tornadoes, and flooding in Mississippi
- National Taxpayer Advocate mid-year report to Congress
- Third quarter update to IRS 2023-2024 Priority Guidance Plan
- IRS provides tax relief for taxpayers affected by fires and flooding in New Mexico
- IRS provides tax relief for taxpayers affected by storms and tornadoes in Florida
- IRS provides tax relief for taxpayers affected by storms, tornadoes, and flooding in Oklahoma
- Final regulations: Disallowance of deductions for certain conservation easement contributions by partnerships, S corporations
- KPMG reports: Arkansas (reduced corporate income tax rate); Oklahoma (sales and use tax exemption for digital assets mining equipment); Vermont (taxation of remotely accessed software)
Exempt Organizations
- D.C. Circuit: IRS’s denial of tax-exempt status upheld
Transfer Pricing
- Finland: Public country-by-country reporting implemented
- Germany: Draft bill for Annual Tax Act 2024 published, includes Pillar Two changes; other tax developments
- Italy: Draft legislation implementing public country-by-country reporting
- Malta: Public country-by-country reporting implemented
- Norway: Consultation on implementation of Pillar Two UTPR
- Poland: Tax-exempt rental income of family foundations; transfer pricing documentation required with lump-sum taxation; partnership liquidation subject to VAT (court decisions)
- KPMG report: Accounting for income tax implications of Pillar Two GloBE top-up taxes
- Canada: Outstanding tax measures enacted, including Pillar Two, EIFEL, hybrid mismatch, clean economy, and GAAR
- EU: ECOFIN report addressing FASTER, “Unshell,” transfer pricing, and BEFIT directives
Africa
- Algeria: MLI signed
- Summary of tax developments (June 2024)
- KPMG report: Global developments in ESG-related taxes, incentives, and grants (ESG tax tracker, updated June 2024)
- East Africa: 2024-2025 budgets (Kenya, Tanzania, Uganda)
Read TaxNewsFlash-Africa
Americas
- Mexico: Special tax on production and services not includible in VAT base (court decision)
- KPMG report: Global developments in ESG-related taxes, incentives, and grants (ESG tax tracker, updated June 2024)
- Costa Rica: Guidance for VAT-exempt taxpayers
- Mexico: Updated version of CFDI’s e-waybill supplement
- Canada: Outstanding tax measures enacted, including Pillar Two, EIFEL, hybrid mismatch, clean economy, and GAAR
Asia Pacific
- Australia: Consultation on hydrogen, critical minerals production tax incentives
- Australia: Guidance on medical industry payroll tax (Victoria)
- Australia: Real property tax proposals in 2024-2025 budget (Australian Capital Territory)
- Australia: Updated advice on waiver of 2020-2021, 2021-2022 payroll taxes for eligible employers (Victoria)
- KPMG report: Global developments in ESG-related taxes, incentives, and grants (ESG tax tracker, updated June 2024)
- Hong Kong: Proposals to grant tax deduction for lease reinstatement costs, remove time limit for claiming commercial and industrial building allowances
- Australia: Legislation on taxation of general insurers passes Parliament
- Australia: Taxpayer not liable for withholding tax on embedded royalties or subject to DPT (Full Federal Court decision)
- Australia: Guidance on when tax authority may disregard operation of “Division 7A”
- Australia: Guidance on claiming foreign resident capital gains withholding tax credit
- India: Recommendations of GST Council meeting
Europe
- Cyprus: Extended deadline for individual income tax returns for 2023
- Estonia: Amendments to land tax law
- EU: Priorities of Hungarian Presidency of EU Council
- Germany: Draft bill for Annual Tax Act 2024 published, includes Pillar Two changes; other tax developments
- Germany: Final guidance on defensive measures against non-cooperative jurisdictions
- Austria: Draft legislation amending tax law; other recent direct and indirect tax developments
- Spain: Broader interpretation of industrial activity for purposes of reduced excise duty on electricity (Supreme Court decision)
- KPMG report: Global developments in ESG-related taxes, incentives, and grants (ESG tax tracker, updated June 2024)
- Poland: Tax-exempt rental income of family foundations; transfer pricing documentation required with lump-sum taxation; partnership liquidation subject to VAT (court decisions)
- Romania: New regulation expands e-invoicing mandate to B2C transactions
- Austria: Draft legislation amending tax law
- EU: ECOFIN report addressing FASTER, “Unshell,” transfer pricing, and BEFIT directives
- Italy: Guidance on cooperative compliance regime
Read TaxNewsFlash-Europe
FATCA / IGA / CRS
- Argentina: Extension of FATCA and CRS deadline
- Singapore: Updated FATCA FAQs
- UAE: Updated FATCA and CRS system FAQs
- British Virgin Islands: Webinar on CRS reporting and deregistration procedures for entities
Trade & Customs
- United States: U.S. BIS updates boycott requester list
- United States: Italian company agrees to pay $538,000 for violations of U.S. OFAC sanctions on North Korea
- United States: U.S. university settles export control violations related to genetically modified fruit flies
- China: Export controls on select aerospace and special organic materials
- EU: New sanctions against Russia focused on enforcement issues
The items described above are also reported as editions of TaxNewsFlash:
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