The U.S. and France agreed to push ahead with creating a global digital tax system at a Group of Seven meeting, papering over a feud on the matter that still has Washington dangling threats of tariffs.
Lawmakers overcame objections from Sen. Rand Paul who had held up the treaties over fears that they could jeopardize U.S. taxpayers’ privacy.
A French-U.S. clash over digital taxation overshadowed the start of a Group of Seven finance chiefs meeting as France refused to flinch on its levy that would hit tech giants.
The Internal Revenue Service offered additional information for multinational companies repatriating their foreign profits under the Tax Cuts and Jobs Act.
The move could be a prelude to new tariffs under the Trump administration.
Substantial changes in the regulations for the new global intangible low-taxed income could mean that many more amended K-1 schedules will be necessary for tax practitioners this year.
Tom Wheelwright sees value-added taxes as a cause of current tariff troubles.
Multinational corporations got some long-awaited clarity from the IRS, which issued new rules on Friday clarifying how they must compute a new international tax.
The Trump administration is deep in talks with 129 other countries on implementing a new standard for taxing digital companies, but its heart lies elsewhere.
The OECD is calling for ideas on handling tax in the new worldwide economy.