Regulatory Analysis
Through an update to its FAQs, IRS announced it will extend the deadline to renew the FFI Agreement from July 31 to October 24. Foreign Financial Institutions in Model 2 or Non-IGA countries are required to sign and adhere to the terms of the Agreement to be considered Participating. Should an FFI not sign the Agreement, […]
This week, US Treasury announced it has signed a Model 1 IGA with Turkmenistan. Previously, Turkmenistan was considered to have an agreement “In-Substance.” The IGA is a 1B type, meaning that the United States will not share tax information with Turkmenistan.
The IRS has released its 2017 Draft versions of Forms 1094-B, 1094-C, 1095-B, and 1095-C. There were no changes to Form 1094-B. Form 1094-C had two changes: The removal of selection C, “Section 4980H Transition Relief,” from Line 22, and the removal of column (e) “Section 4980H Transition Relief Indicator” from Part III. There are […]
The Arizona Department of Revenue has released its 2017 version of Form A1-WP, Payment of Arizona Income Tax Withheld, which withholding agents should file to the Department along with each payment of withholding tax. Only employers who are required to make more than one Arizona withholding payment per calendar year, and who do not pay by […]
Cook County Illinois will resume collection of their sweetened beverage tax after a judge lifted a temporary restraining order and dismissed a lawsuit filed by the Illinois Retail Merchants Association preventing implementation of the tax. The sweetened beverage tax consists of a $0.01 tax on each ounce of sweetened beverage sold at retail. Retailers are […]
A few short weeks ago the Massachusetts Department of Revenue enacted and then rescinded Directive 17.1 which was slated to take effect on July 1. The Directive would have imposed a sales tax collection and remittance requirement on remote sellers/internet vendors that provide software (including “cookies”) to Massachusetts customers or use “content distribution networks” located […]
The tax administration of Portugal has issued a new regulation (Portaria 221/2017) that will allow taxpayers to pay the VAT due on imports using Portugal's periodic VAT return. The new measure is expected to enter into effect in two stages: September 1, 2017 for most goods contained in Annex C of the VAT Code (except […]
Last week, IRS added two FAQs to its IDES Technical FAQ page. Those questions, E23 and E24, concern the use of certificates for reporting via IDES. In particular, the IRS advises that if a filer has a valid certificate from an approved certificate authority, it may chose to continue using even if that authority is no […]
The IRS has released a draft version of 2017’s Form 8966. The Form is intended for certain types of financial institutions to use in lieu of electronic reporting. The Form contains no substantive changes to last year’s edition. This might suggest that there will likely not be many changes to the specifications of the IRS XML […]
The government of Jersey has published amendments to its previously enacted CRS regulations. The amendments relate to Schedule 2 and Schedule 3 of the regulations, which list the early adopter participating jurisdictions and the late adopter participating jurisdictions, respectively. The lists have been revised to reflect the current official OECD list of jurisdictions that have committed to […]
The German Federal Central Tax Office (BZSt) has released a FATCA Infobrief that addresses various matters concerning the upcoming filing season. German Financial Institutions are to transmit their FATCA reports no later than August 31, 2017. The BZSt has announced that feedback for FATCA data delivery is not currently possible due to technical difficulties. This […]
The Mauritius Revenue Authority has announced an extension of the deadline for Financial Institutions to report under FATCA. The original deadline of July 31 was extended to allow FIs until August 31, 2017 to submit FATCA transmittals to the MRA. The facility for FATCA reporting for the 2016 tax year is available on the MRA’s website, and will […]
The Inland Revenue Authority of Singapore recently published two updates to their FATCA page. The first update is a reminder that the filing deadline for reporting Singapore FIs passed on May 31, 2017 for the 2016 reporting year. All FIs who have not done so must report 2016 information immediately, and due to the delay […]
Online sellers should take immediate notice. House Bill 49 has been passed by the Ohio legislature, signed by the governor, and is set to take effect on January 1, 2018. Hidden within its depths, the language of the bill creates a rule that imposes a tax collection and remittance obligation (nexus) on sellers who use software or […]
Arizona’s Department of Revenue has recently released a revision to its Joint Tax Application, the JT-1. The Application is used to license a new business or record a change in ownership of a business within the state. The updated Application now has instructions for determining frequency of filing for use in Section C, Box 4 […]
The Court of Justice of the European Union (CJEU) has issued recent opinions in two cases involving VAT: In Case C-633/15 (London Borough of Eating), the CJEU held that the UK could not apply a condition to an exemption for services related to sporting facilities only on non-profit organizations governed by public law, without also applying the […]
The European Commission has published its 2017 report on Taxation Trends in the European Union, which is now available online. The Commission notes that consumption taxes grew slightly as a share of total tax revenue in 2015, and that VAT typically composes between two-thirds and three-quarters of the implicit tax rate on consumption. This figure will […]
Two major announcements on a modernized system of VAT have been made in the past month, as part of an ongoing discussion among European Union leaders. First, the Estonian Presidency of the Council of the European Union stated its intention to launch negotiations on a definitive cross-border system of VAT, based on the principle of taxation in […]