Week In Insights: with the key deadlines looming, let’s go
With around a year to go for the FIFA World Cup in Qatar to kick off, men’s national teams around the world are battling it out over who will qualify for the opening matches.
Of the 210 prospects, only three teams have succeeded so far: Germany and Denmark were the first two European teams to qualify through play, and Qatar automatically qualify as host country.
A total of 31 teams, plus the host country, will enter the field in November 2022 to compete for the most prestigious trophy in the beautiful game. To get there, the teams must first compete in the group stage. With about a month to go, the qualifiers are making headlines around the world, alongside another international news player: the OECD-led tax talks for a global tax deal.
Last week, the global tax deal went ahead with a deal that would set a global minimum tax rate and change the way multinational companies are taxed.
Soon after, the Biden administration reached an agreement with Italy, the UK, Spain, Austria and France – those countries with national taxes on digital services – to remove those taxes. once an international solution takes effect.
As with the World Cup qualifiers, there is still plenty of time to work out the details. The bulk of the work for pillars one and two is expected to continue until 2022 with the aim of making the agreements effective in 2023.
From sport to taxation, the world is increasingly global. With so many moving parts in so many places, it can be difficult to stay on top of everything you need to know. Fortunately, this week, as always, our experts have the latest federal, state and international tax analysis to keep you in the loop.
The Exchangeâ¦ This is where great ideas intersect.
âKelly Phillips Erb
Quick numbers quiz
Of the 140 countries involved in the global tax negotiations led by the OECD, how many have signed an agreement that would change the way multinational corporations are taxed around the world?
This week, our experts covered a wide range of topics, from the OECD-led deal to VAT reform. For a glimpse of what’s in the news, here’s our roundup:
Apart from global tax negotiations, the EU is focusing on VAT reform. In Keeping Track of the EU’s Changing VAT Landscape, Anna Higgins of Sovos examines new EU VAT reporting requirements and the role of intermediaries. Higgins explains why it’s crucial, especially as the UK continues to unravel EU law, that suppliers and buyers are made aware of new rules for cross-border trade.
But the OECD-led deal is what really dominated Insights this week. Here’s a look at our most recent coverage:
One thing that drives globalization? Fintech, or the fusion of technology with the financial services industry. In Fintech and the Growth of Islamic Finance, Alif’s Abdullo Kurbanov and Zuhursho Rahmatulloev describe how fintech is transforming the development of Islamic finance, and they also examine some relevant questions on how to tax financial transactions that have been structured to occur. comply with the principles of Sharia law. .
In the United States, California Gov. Gavin Newsom passed a law aimed at tackling abuse of conservatives on the same day a California court suspended Britney Spears’ father as a conservative. In California Expands Conservatorship Protections, Andrew Verriere of Hartog Baer & Hand describes new provisions added to the state’s Estates Code and rules governing court-appointed attorneys and conservators.
If the tax world is to adapt to global changes, our focus must change. In Advocacy for Inclusion Means Investing in People, Not Just Employees, Rosalie Valdez-Vitale, Tax Director of Trust Solutions at PwC, explains how a people-centered mindset can help foster inclusion at within the workforce.
Opinion and commentary
The most recent publication of confidential documents from the super-rich – dubbed the Pandora Papers – highlights how South Dakota has become one of the most popular tax havens in the world. Naturally, those looking to keep taxes low, especially in high-tax states, also want to join the game. Alexis Leondis wonders: is setting up a trust in South Dakota worth it. ?
Columnists and contributors
The Biden administration wants Congress to increase third-party reports to require banks to provide more data to the IRS. The proposal is not popular with banks – or taxpayers – but lawmakers hope the provision will help close the tax gap, which in 2019 stood at $ 574 billion in taxes legally owed but not collected by the IRS.
Breaking down your bank account’s reporting plan to the IRS provides insight into how the new reporting requirements build on existing rules for third-party reporting, how the measure might change during the legislative process, and how taxpayers might be affected.
Our Spotlight series shines a light on the careers and lives of tax professionals around the world. This week’s spotlight is on Enrolled Agent Manasa Nadig. Nadig has over 20 years of experience in tax preparation and planning and is the founder and owner of MN Tax & Business Services, a virtual firm based in Southeast Michigan that works with clients around the world. .
The Group of 20 finance ministers formally supported a global plan to review where and how multinationals are taxed and set a corporate tax rate of at least 15%. Officials will then need to grapple with a plan to bring the deal to fruition, including rolling back unilateral digital tax measures and drafting model treaties and legislation for countries to implement the new rules. In this week’s episode of Talking Tax, Bloomberg Tax reporter Hamza Ali talks about the latest developments and what lies ahead as countries seek to implement the landmark deal.
There were still about 17.6 million tax returns pending processing in September, and the IRS expects to receive more than 4 million additional returns in October. The delay has resulted in the frustration of many taxpayers, especially those who are struggling with error notices and being assessed penalties and interest for alleged errors. These penalties add up. For fiscal 2020, the IRS imposed nearly $ 31.4 billion in civil penalties. But are these sanctions fair? Are there any claims or defenses that can get taxpayers out of these penalties? In a recent episode of the Taxgirl podcast, Andrew Gradman talks about the general scope of tax penalties and what taxpayers can do about them.
From hacks to best practices, I love hearing what my fellow tax professionals have to say about how they are successful in the office. We have therefore instituted a networking minute on Friday to hear what you have to say about life in the profession.
Last week I asked:
What social media platform do you rely on most for professional outreach and communication?
An overwhelming majority of those surveyed responded to Twitter, or more specifically to #TaxTwitter.
If you’re looking to get started on Twitter, check out @tax (Bloomberg tax), @taxgirl (it’s me, Kelly Phillips Erb), @IRSnews (IRS), @IRS_CI (IRS Criminal Investigation), or just follow the hashtag #TaxTwitter.
Here is this week’s question:
Now that the year is drawing to a close, what are you still doing in the office to prepare for the next year?
You can leave your response on social media or email your response to [email protected] (subject line “Chime In”). Make sure to include your name, business, and title. I will collect some of the best answers and include them in a future edition of the newsletter.
Exclusive content for Bloomberg Tax subscribers
Don’t want to wait for updates on Twitter to find out what’s up with reconciliation (HR5376)? Check out our Bloomberg Tax and Accounting watch page, which brings together resources on related tax provisions, including the latest news from our team of journalists on Capitol Hill, links to key documents and our growing body of work. analyzes.
* Note: Your Bloomberg Tax ID will be required to access the monitoring page.
Quick response to numbers
136. Only four countries involved in the talks – Kenya, Nigeria, Pakistan and Sri Lanka – have not yet signed.
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